Tip Credit Rule Nears Release After Clearing White House Review

Sept. 20, 2019, 3:56 PM

A Labor Department rule to revise wage requirements for restaurants and other businesses with tipped workers cleared the White House regulatory review shop, bringing it a step closer to public release.

The proposed rule would clarify a 2018 policy rider passed into law in a government spending bill that prohibits employers—including supervisors and managers—from participating in tip-pooling arrangements. The rule also would walk back an Obama-era “80/20" policy that forced businesses to pay the full minimum wage to tipped workers for time spent on tasks that don’t generate tips, like prep work. The DOL previously had said workers should get ...

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