DOL’s Overtime Rule to Impact Restaurant Industry

The US Department of Labor finalized its much-anticipated overtime rule, making an estimated 1.3 million more American workers eligible for time-and-a-half pay. The final rule allows employers to use nondiscretionary bonuses and incentive payments, including commissions, that are paid at least annually to satisfy up to 10% of the salary level. In an interview with Nation’s Restaurant News, Hagood Tighe, co-chair of the firm’s Wage and Hour practice, outlines what employers need to know and what uncertainty still remains. He says, “Tips would not be considered nondiscretionary payments because gratuities are paid by customers, but service charges or other surcharges might be — that’s not yet clear.” Additionally, he urges employers to keep an eye out for potential litigation on the rule before the end of the year.

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