DOL Issues New Guidance Rescinding the 20% Rule: What This Means for Managing Tipped Employees

On November 8, the Wage and Hour Division of the Department of Labor (DOL) rescinded the so-called “20% Rule,” which purported to segregate the duties of tipped employees between allegedly tip-generating duties and related non-tipped duties (sometimes referred to as a “side work”), and thereby limit the availability of the tip credit. The rule has been replaced with prior DOL guidance issued in 2009.

Speakers Jeff Brecher and Eric Magnus will discuss the new guidance, implications of this change for the service industry, and offer advice on how employers can assign work to tipped employees without jeopardizing use of the tip credit.