Employers that utilize the “tip credit” under the federal Fair Labor Standards Act, or whose employees receive tips, should carefully consider regulatory changes that were proposed by USDOL today.
The USDOL has removed the infamous "20% Rule" from its Field Operations Handbook, but employers should be mindful of its disjointed approach to revisions across and within agency materials.
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.
Legislation has been introduced that would ultimately more-than-double the FLSA's minimum wage from today's $7.25 an hour to $15 an hour.
There is no such thing as an FLSA "subminimum wage for tipped workers".
Tipped-worker employers should immediately respond to the misleading "tipped minimum wage" PR campaign.
A White House report promoting a substantial jump in the FLSA's minimum wage perpetuates now-widely-disseminated propaganda about an alleged "tipped employee minimum wage" of $2.13 per hour.