Labor Department Withdraws Onerous 80/20/30 Tip Credit Rule: 5 Practical Tips for Employers

If you take the tip credit for employees that receive gratuities, you’ll want to review your policies and practices in light of Monday’s game-changing announcement from the U.S. Department of Labor (DOL). The Department officially withdrew its 2021 tip credit rule to align with a recent 5th Circuit decision that vacated the Biden-era 80/20/30 rule. The rule required employers to pay tipped workers the full minimum wage for all time spent providing “directly supporting work” — which means side...
By: Fisher Phillips

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