Tip credit controversies are alive and well as employers seek clarity on the USDOL's so-called 20% Rule regarding "tipped employees" engaging in activities that do not, or at least not directly, produce tips.
Does the FLSA apply in this scenario? Take our quiz, and check back for the discussion post.
Before forging ahead with summer hires, employers should carefully evaluate state law restrictions to determine whether they overlap and/or supplement the FLSA and, either way, how they apply depending on a multitude of factors that can go well-beyond just the minor’s age.
Hiring minors can be daunting in any state given the FLSA's child labor restrictions that vary depending on the individual's age, the work contemplated, and even the local public school's schedule.
From FLSA enforcement programs to compliance resources, the USDOL has stepped up and provided timely guidance that ultimately can benefit everyone, if employers understand what the various materials do and do not say.
USDOL's Payroll Audit Independent Determination (PAID) pilot program is meant to provide employers with the framework to proactively resolve potential FLSA claims. Nonetheless, on the whole, it seems that the benefits and risks are not particularly distinguishable from an investigation.