One major regulatory focus of the Department of Labor’s (DOL) Wage and Hour Division in the first year of the Biden Administration has been rolling back regulatory policies under the Fair Labor Standards Act (FLSA) that had been finalized during the Trump Administration and to which organized labor objected.
Several of these policies were included in major revisions to the FLSA regulations related to use of the so-called tip credit that were finalized by the Trump DOL at the end of 2020. In the last expected reversal of a provision adopted in that rule, DOL has now finalized a revision governing when an employer may take a tip credit with respect to employees who do not spend all of their time on tip-producing work. As expected, the final rule closely tracks the proposal published by DOL back in June, but with one clarification that acknowledges that the proposal, as originally drafted, would have been highly impractical to implement.
Members of the Center for Workplace Compliance (CWC) can read more here.