News & Announcements

DOL Issues Final Rule on Tipped Employees

Published Thursday, December 24, 2020 8:57 am



On December 22, the DOL announced a final rule revising its tipped employee regulations. The DOL also provided FAQs. Among other things, the final rule:

  • Allows employers that do not take a tip credit to implement mandatory "nontraditional" tip pools that include employees who do not customarily receive tips;
  • Explicitly prohibits employers-regardless of whether they take a tip credit-from keeping employees' tips for any purpose, which includes prohibiting managers and supervisors from keeping tips received by employees;
  • Incorporates a new recordkeeping requirement for employers that do not take a tip credit but collect employees' tips to operate a mandatory tip pool;
  • Codifies recent guidance that an employer may take a tip credit for time that an employee in a tipped occupation performs related non-tipped duties either contemporaneously with or for a reasonable time immediately before or after performing tipped duties.

This final rule is effective sixty days after publication in the Federal Register.

By using this website, you agree to HEC's Privacy Policy and HEC's Terms of Use.

Subscribe

If you are a member, please login below to manage your subscription. Otherwise, click "Continue to Subscribe"

Login  Continue to Subscribe

How did you hear about HEC?

I would like to receive the following:

News & Updates
Training Events Notices

Subscribe

Fill out the fields below to receive HEC emails.

First Name
Last Name
Email
Organization