Tipped Workers Will Earn More for Side Work Under New Final Rule

Oct. 28, 2021, 1:15 PM

The U.S. Department of Labor reinstated a longstanding policy, revoked late in the Trump administration, requiring restaurants and other businesses to pay tipped workers a higher minimum wage when they’re performing work that doesn’t directly generate gratuities.

A final rule published Thursday says that when tipped employees, such as servers and bartenders, spend at least 20% of their workweek on duties that support their occupation but don’t directly produce tips, they’ll be entitled to the full minimum wage of $7.25 an hour for that work, rather than the pay floor of $2.13 that’s reserved for workers who regularly earn tips. ...

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