Written comments have been filed with the Biden Administration Department of Labor (DOL) in response to the agency’s latest proposal to further chip away at sensible changes to DOL’s “tip credit” regulations that were adopted at the end of the last administration.
In this rulemaking, DOL is proposing to get rid of a revision to the regulations that allowed for a more flexible interpretation of when an employer can take a tip credit with respect to tipped employees when they are working on so-called related duties that do not themselves generate tips. As an alternative, DOL is proposing to substitute instead a rigid formulaic test that will be impractical to apply in practice. Indeed, DOL’s goal would appear to be deterring employers from taking the tip credit at all, even though it is expressly authorized by the Fair Labor Standards Act (FLSA).
Members of the Center for Workplace Compliance (CWC) can read more here.