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November 15, 2018 News

CLIENT ALERT: The U.S. Department of Labor Rescinds “80/20 Rule” for Tipped Employees under the Fair Labor Standards Act

November 15, 2018 – The U.S. Department of Labor issued a potentially groundbreaking Opinion Letter rescinding the so-called “80/20 Rule” for tipped employees, which has been fodder for countless wage and hour lawsuits throughout the country over the years.

As a means of clarifying the significant confusion involved with the application of the 80/20 Rule, the DOL decided to rescind the rule with immediate effect.  The attached Client Alert details the 80/20 Rule and specific principles articulated by the Opinion Letter to assist employers in the wake of the rule’s rescission.

In addition, the Client Alert examines what the rescinding of the federal 80/20 Rule means under New York Labor Law; and reminds New York employers of the increase in the minimum wage and tip credit thresholds as of the last day of 2018.

PDF of Client Alert:  CLIENT ALERT:  The U.S. Department of Labor Rescinds “80/20 Rule” for Tipped Employees under the Fair Labor Standards Act