Department of Labor Withdraws "80/20 Rule" for Tipped Employees, Impacting Wages

The Department of Labor has formally withdrawn guidance underlying the "80/20 rule" for tipped employees. Previously, employers generally had to pay the full federal minimum wage for non-tip-producing work exceeding 20% of an employee's time. Without this limit, employers may now pay the federal tipped wage of $2.13 per hour for such duties, with tips making up the remainder of the $7.25 minimum wage.