Atlanta Partner Discusses DOL’s New Tip Credit Formula with SHRM

According to SHRM, “the U.S. Department of Labor (DOL) has clarified that it will no longer cap the number of duties an employer may assign to a tipped worker and still qualify for the ‘tip credit,’ so long as the duties are job-related.” Reporters at the publication turned to Atlanta partner Ted Boehm for insight on the developments. He says, “the 20 percent limitation applied in Fast vs. Applebee’s Int’l came from the DOL's own Field Operations Handbook, which DOL agents use in investigations.” The limitation was "impractical because it required employers to track each job duty performed by employees in a very fast-moving setting where tipped employees are moving rapidly, doing lots of things all at once, while trying to provide a good customer experience.”

To read the full article, visit SHRM.