Labor Dept. Kills 80/20 Tip Credit Rule

The Obama-era “80/20” rule, used to determine when restaurants can count servers’ tips as part of their wages, has been officially rescinded by the U.S. Department of Labor.

The rule prohibited employers from paying tip-credit wages for non-tipped side work. The rule, which had been in effect since 2009, required employers to pay the regular minimum wage for work beyond 20% of working hours on non-tipped duties.

The federal guidance does not affect similar 80/20 regulations in force in state jurisdictions, such as New York.

RELATED CONTENT

LTI JasonPrange

Georgia-Based LTI Appoints Regional Sales Director

The new hire, formerly of Vollrath and Compass Group USA, joined the maker of modular and custom serving systems on April 22.

CanadianFlag

Marcone Adds More Next-Day Parts in Canadian Market

Respective makers of cook-and-hold ovens and warewashing equipment are now partnering with the parts distributor.

- Advertisement -

- Advertisement -

- Advertisement -

TRENDING NOW

- Advertisement -

- Advertisement -

- Advertisement -