DOL Final Rule on Tipped Employees Effective Today

Employers with tipped employees usually can take a credit for tips to reduce the minimum wage paid to these workers. Starting today, under the DOL’s final rule, employers must pay tipped employees at least the full minimum wage for any period in which they perform non tip-producing work for a substantial amount of time. A tipped employee is someone who customarily and regularly received more than $30 a month in tips. Tip-producing work is any work performed by a tipped employee that provides services to customers for which the tipped employee receives tips. But “directly supporting work” (e.g., refilling salt and pepper shakers) of a continuous 30 minutes or more or any work that is not part of the tipped occupation (e.g., a bartender cleaning the bathrooms) bars any employer credit. #IdeaoftheDay

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