DOL Proposed a Change to the Tip Credit Rule

The DOL has proposed regulations to change the tip credit rule, which allows an employer to pay an employee in a tipped occupation a lower wage and take credit against its wage obligation for the difference between the cash wage and the full federal minimum wage. The proposed would implement the old 80/20 rule, where an employer can only take a tip credit on work that directly supports tip-producing work if it is less than 20% of all hours worked during the work week. #IdeaoftheDay