Tag Archives: hospitality employers

DOL Issues New Guidance for Hospitality Employers on Tipped Employees

Earlier this month, the U.S. Department of Labor (“DOL”) issued Opinion Letter FLSA2018-27 providing updated guidance to employers on how to pay tipped employees.  The new Opinion Letter abandoned the previous 80/20 tip credit rule. The DOL’s new guidance provides no limit on the amount of time a tipped employee spends on related non-tip-producing duties so long as such duties are “performed contemporaneously with the duties involving direct service to customers or for a reasonable time immediately before or after performing such direct-service duties.”