News and Information

USDOL Proposes Further Delaying Effective Date of 2020 Tip Regulations Final Rule

On March 23, 2021, the US Department of Labor (USDOL) announced two Notices of Proposed Rulemaking (NPRM) related to the Tip Regulations Under the Fair Labor Standards Act (FLSA) final rule originally published on December 30, 2020.

As a result, the portions of the rule that will go into effect on April 30, 2021 include:

• A prohibition on employers keeping tips received by workers, regardless of whether the employer takes a tip credit
• The ability of an employer that does not take a tip credit to include non-tipped workers, such as cooks and dishwashers, in nontraditional tip-sharing agreements and, by doing so, ensure their earnings

The portions of the rule the NPRMs propose to delay until December 31, 2021, include those that address:

• Assessment of civil money penalties (CMPs)
• The tip credit’s application to tipped employees who perform tipped and non-tipped duties

Public comment may be made on the Federal Register site here through April 14, 2021, and here through May 24, 2021. For more information, see the USDOL site.