Daily Labor Report®

Tipped Wage Policy Rollback Could Put Labor Dept. at Legal Risk

Nov. 26, 2018, 11:30 AM

The Trump administration’s recent policy change on compensation for tipped workers when they wash dishes or clean tables will likely cause legal trouble again, some attorneys and former Labor Department staff say.

The department reissued a 2009 opinion letter Nov. 8 that said waiters who rely on tips for wages, but have non-tip-producing duties that are incidental to their main job, don’t have to be paid full minimum wage for those other tasks.

Controversy and confusion still abound over the guidance, also referred to as “80/20.” The 80/20 rule, originally from the Reagan administration, required employers to pay tipped workers...

To read the full article log in. To learn more about a subscription click here.