February has been a busy month for the U.S. Department of Labor (“DOL”). The Wage and Hour Division (“WHD”) published new guidance addressing tipped employees and payment of subminimum wages and released a new compliance tool. The DOL also named a new Acting Wage and Hour Administrator. Employers should review these new publications and developments for applicability to their workforce: Continue reading
On November 8, 2018, the U.S. Department of Labor (DOL) re-issued an opinion letter abandoning the “80/20 Rule,” which prohibited employers from taking a tip credit if a tipped employee spent more than 20% of his or her working time on non-tipped work.
The opinion letter is a re-issuance of one previously published on January 16, 2009 by the Bush administration. The letter, however, was withdrawn once President Obama took office. The DOL’s new guidance provides restaurant and hospitality employers with clarity and a more practical approach defining when a tip credit can be taken. Continue reading