U.S. Department of Labor Wage and Hour Division Proposed Rule

Invites Comments from Public by August 23, 2021. - Proposed Rule Sets Limits of Non-Tip Producing Work That a Tipped Employee Can Perform When Employer is Taking a Tip Credit. -

The department today announced a notice of proposed rulemaking to set limits on the amount of non-tip producing work that a tipped employee can perform when an employer is taking a tip credit.

The proposed rule clarifies when an employee is working in a tipped occupation and when a worker has performed such a substantial amount of non-tipped work that an employer can no longer take a tip credit and must pay the full federal minimum wage. It also clarifies that an employer may only take a tip credit only when tipped employees perform work that is part of their tipped occupation.

As such, the department invites comments from the public on the proposed rule at www.regulations.gov. The comment period closes August 23, 2021.

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