In yet another formal proposal to roll back the revised “tip credit” regulations adopted at the end of the Trump Administration, the Biden Department of Labor (DOL) is proposing to jettison a provision that allowed for a more flexible interpretation of when employers can take a tip credit with respect to tipped employees when they are working on so-called “related” duties not directly attached to tip-producing activities.
And instead of proposing to simply reinstate the so-called 80/20 rule used during past Democratic administrations as was expected, DOL has proposed an even more restrictive rule that will prohibit use of a tip credit for related duties if they exceed 30 minutes at a time, regardless of whether the total time conforms to the 80/20 rule.
Members of the Center for Workplace Compliance (CWC) can read more here.