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DOL Returns to Pre-2021 Dual Jobs Regulation for Tipped Employees

The U.S. Department of Labor (DOL) published a final rule on Dec. 17, 2024, restoring the pre-2021 language of the “dual jobs” regulation for tipped employees under the Fair Labor Standards Act (FLSA). This is a technical...more

Fifth Circuit Strikes Down DOL Tip Credit Rule: What It Means for Employers

In a long-awaited decision, the Department of Labor (DOL) regulation setting strict limits on the amount of time that tipped employees can spend performing work that does not directly generate tips has been struck down by the...more

Restaurant Associations’ Effort to Invalidate DOL’s ‘Dual Jobs’ Rule Rejected by Texas Federal Court

The “Dual Jobs” Final Rule, which regulates when employers may take a tip credit under the Fair Labor Standards Act (FLSA), is a valid and reasonable exercise of the Department of Labor’s (DOL) authority, a federal district...more

Fifth Circuit Reverses Denial of Preliminary Injunction to Invalidate DOL Tipped Dual Jobs Rule

The U.S. Court of Appeals for the Fifth Circuit has reversed and remanded a district court’s denial of a motion to preliminarily enjoin the Dual Jobs Final Rule addressing when employers may take a tip credit under the Fair...more

2021 Wage & Hour Developments: A Year in Review

In 2021, wage and hour laws continued to change and develop, expanding in some areas and contracting in others. In “2021 Wage & Hour Developments: A Year in Review,” we look back on significant wage and hour developments at...more

DOL Formally Reinstates ‘20%’ Rule, Adds ‘30-Minute’ Rule Setting Limits on Tip Credit Use

On October 28, 2021, the U.S. Department of Labor (DOL) issued a Final Rule establishing limits on the amount of time tipped employees can spend performing work that is not “tip- producing work” and still being paid at the...more

Labor Department Issues Tip Regulations Final Rule On Tip Sharing, Civil Monetary Penalties

The U.S. Department of Labor (DOL) has issued a Final Rule under the Fair Labor Standards Act (FLSA), addressing the conditions under which managers or supervisors may receive or share tips, including whether managers and...more

Eleventh Circuit Refuses To Defer To DOL Opinion Letter Eliminating ‘20%’ Rule

In late 2020, the U.S. Department of Labor (DOL) issued a Tip Regulations Final Rule that, in part, sought to eliminate the so-called “80/20,” or “20%,” Rule under the Fair Labor Standards Act (FLSA). The 20% Rule has been...more

Labor Department Brings Back The ‘80/20’ Rule — Along With New Companion, The ‘30-Minute’ Rule

The Department of Labor (DOL) has issued a new Notice of Proposed Rulemaking (NPRM), again seeking to regulate the circumstances under which an employer may pay a tipped employee a direct wage below the minimum wage. The NPRM...more

Labor Department Further Delays FLSA Tip Regulations Final Rule Until The End Of 2021

On April 28, 2021, the U.S. Department of Labor (DOL) announced that it will further delay, until December 31, 2021, the effective date of portions of the previous administration’s Tip Regulations Final Rule under the Fair...more

DOL Adopts Portions Of Tipped Regulations Final Rule, Proposes Further Delay Of Other Portions

While deciding to make effective some portions of the Tipped Regulations Final Rule published in the final weeks of the former administration, the U.S. Department of Labor (DOL) has proposed further delay and consideration of...more

DOL Delays Tip Regulations Final Rule, Independent Contractor Final Rule Likely Next

As expected, the U.S. Department of Labor (DOL) has formally delayed the effective date of the Tip Regulations Final Rule, from March 1, 2021 to April 30, 2021. The Tip Regulations Final Rule, issued in late December 2020,...more

The Proposed Federal Covid-19 Relief Bill Includes A $15 Minimum Wage Hike And Elimination Of The Tip Credit. Will Those...

Making good on President Biden’s campaign promise, the House of Representatives has included in its $1.9 trillion Covid-19 relief bill, known as the “American Rescue Plan Act of 2021,” revisions to the Fair Labor Standards...more

States Challenge DOL’s Tip Regulations Final Rule, DOL Withdraws Opinion Letters

On January 19, 2021, eight states (Delaware, Illinois, Maryland, Massachusetts, Michigan, New Jersey, New York, and Pennsylvania), along with the District of Columbia, filed a lawsuit seeking to enjoin the Tip Regulations...more

2020 Wage & Hour Developments: A Year In Review

In 2020, federal and state laws regulating wages and hours of work continued to change and develop, expanding in some areas, and contracting in others. In “2020 Wage & Hour Developments: A Year in Review,” we look back on...more

New York State To Eliminate Tip Credit For All But Hospitality Industry Workers

In New York, 2020 will be the last year employers who employ tipped employees in car washes, nail salons, and parking garages, among other establishments, will be permitted to pay such employees a rate below the minimum wage...more

DOL Proposes FLSA Regulations To Close Door On ‘80/20’ Rule, Implement Tip Pooling Amendments

The Department of Labor (DOL) published a Notice of Proposed Rulemaking (NPRM) on October 8, 2019, to eliminate the “20% Rule,” or “80/20 Rule,” under the Fair Labor Standards Act (FLSA). The 20% Rule, which first appeared...more

USDOL’s Wage & Hour Division Issues Internal Guidance Regarding Elimination Of The “80/20” Tip Credit Rule

Last November, the United States Department of Labor (USDOL) issued Opinion Letter FLSA2018-27, rescinding the so-called “80/20” Tip Credit Rule, a provision that during the last decade had spawned a cottage industry of...more

Wage And Hour Developments 2018: A Year In Review

The law regulating the payment of wages and work hours is a vibrant area: the “fight for $15.00”; battles over who can receive tips (and whether the tip credit should be eliminated entirely); whether workers should be given...more

Labor Department Abandons ‘80/20’ Tip Credit Rule, To Relief Of Restaurant, Hospitality Industries

The Wage and Hour Division (WHD) of the Department of Labor (DOL) has reissued a 2009 opinion letter, effectively withdrawing enforcement guidance that made the tip credit under the Fair Labor Standards Act (FLSA) unavailable...more

DOL Eliminates Employer-Plaguing “80/20” Tip Credit Rule

The Department of Labor (“DOL”) today rescinded its prior guidance that made the tip credit unavailable to tipped employees who spend more than 20% of their time performing allegedly non-tip generating duties. The 20%...more

Restaurant Industry Association Files Suit Challenging “80/20” Rule

The Restaurant Law Center, a public policy affiliate of the National Restaurant Association, has filed suit against the Department of Labor and its Wage and Hour Division, seeking to declare unlawful the DOL’s 2012 revision...more

Department Of Labor Issues Initial Guidance On Tip Pooling Amendment

This week the Department of Labor issued new guidance, in a “Field Assistance Bulletin,” on the recent amendment to the FLSA regarding tip sharing. The recent amendment to the FLSA (which was included in the omnibus budget...more

Governor Cuomo Contemplating Elimination Of Tip Credit

Employers in New York currently are permitted to pay tipped workers a direct cash wage that is below the State minimum wage and take a “credit” for some of the tips received by employees to satisfy the difference between the...more

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