U.S Department of Labor (DOL) Withdraws 80/20/30 Tip Credit Rule

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 On 12/16/21, the US Department of Labor withdrew its 2021 "80/20/30" rule on tip credits, which required employers to pay tipped workers the full minimum wage for all time spent providing "directly supporting work" (i.e., side work like cleaning and setting tables if it exceeds 20% of their hours in the workweek, and when tupped workers performed such work for more than 30 minutes, even if more than 20% of their hours worked).  The DOL's withdrawal occurred following the 5th Circuit's issuance of a ruling in Restaurant Law Center v. DOL which found no basis for the rule in the FLSA and held that the rule was arbitration and capricious. 

https://public-inspection.federalregister.gov/2024-29798.pdf
https://www.ca5.uscourts.gov/opinions/pub/23/23-50562-CV0.pdf


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