Court Strikes Down DOL Tip Credit Rule

08/27/2024 3:59 PM | Maggie Garry (Administrator)

The US Court of Appeals for the Fifth Circuit recently struck down the DOL's 2021 regulation which set strict limits on the amount of time tipped employees could spend performing work not related to generating tips.  The DOL issued a final rule in 2021 (often referred to the 80/20 rule) which limits the amount of time an employee can spend on work that does not generate tips to 20% of their hours in a workweek.  The ruling is considered a win for the restaurant and hospitality industry.  

Sioux Empire SHRM is a 501(c)6 non-profit organization. | PO Box 1302 | Sioux Falls, SD 57101 | Chapter #217

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