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Not So Fast: DOL Pauses Aspects of FLSA Tip Regulations Final Rule | Akerman LLP - HR Defense


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Employers should continue to track and keep records of the percentage of time tipped wage earners spend performing non-tip eligible tasks, as the U.S. Department of Labor (DOL) has pressed pause on several provisions of the Trump Administration’s 2020 Final Rule addressing Tip Regulations under the Fair Labor Standards Act (FLSA). Among the provisions paused is one that effectively eliminated the so-called “80/20” Rule and allowed an employer to still take a tip credit for certain non-tipped duties.
The DOL’s 2020 Final Rule (the “Final Rule”) addressing myriad of FLSA tip regulations was issued in December 2020 and set to go into full effect on April 30, 2021. However, on the eve of the effective date, the DOL announced that it was delaying implementing three parts of the Final Rule, specifically: (i) the “80/20” Rule under the “dual jobs” provisions of the FLSA regulations as it concerns tip ....

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Department of Labor Proposes Delay on Tip Regulations and Independent Contractor Rule | Ervin Cohen & Jessup LLP


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On February 5, 2021, the Department of Labor (DOL) published two notices of proposed ruling to delay the effective date of two rules finalized by the DOL under the Trump Administration regarding tips and independent contractor rules. The proposed delays are designed to allow the DOL “additional opportunity for review and consideration” of both rules.
The first rule is Tip Regulations Under the Fair Labor Standards Act (“Tip Regulations”), which was published on December 30, 2020, and set to go into effect on March 1, 2021. The proposed rule would delay the effective date of the Tip Regulations to April 30, 2021.  Members of the public are invited to comment on the proposed delay through February 17, 2021. ....

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DOL Seeks to Delay Tip Regulations


Thursday, February 11, 2021
One day after President Biden entered office, the White House issued a memorandum directing all agencies to review, and consider delaying, any rules that had been issued by the former administration but that were not yet effective. Following that directive, the U.S. Department of Labor (DOL) has proposed delaying the effective dates of the recently-issued Tip Regulations and Independent Contractor Final Rules. Under the proposal, the effective dates of these Final Rules would be postponed 60 days, from March 1, 2021 to April 30, 2021 for the Tip Regulations Final Rule and from March 8, 2021 to May 7, 2021 for the Independent Contractor Final Rule. ....

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Trump rolls back the 80/20 rule in a blow to the wages of tipped worke


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Less than 30 days before Trump is due to leave office, his Labor Department has imposed a rule that may significantly affect the wages of restaurant workers. By one estimate, it may collectively cost tipped workers more than $700 million a year.
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The new Tip Regulations under the Fair Labor Standards Act rolls back the so-called 80/20 rule, which previously required that 80% of the time a worker who makes the tipped minimum wage (which is lower than the regular tipped minimum wage) spends should be dedicated to tipped work, principally interacting with customers. In a published press statement, the Labor Department’s wage and hour administrator, Cheryl Stanton, said the rule was instated partly because it “provides clarity and flexibility for employers.” ....

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