The Fair Labor Standards Act (“FLSA”) permits employers to take a “tip credit” when paying the wages of a tipped employee. Under federal law, the tip credit enables the employer to pay tipped employees $2.13 per hour ($6.75 per hour in MA) — significantly below the current federal minimum wage of $7.25 per hour ($15 […]
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by Robert P. Rudolph On November 8, 2018 the Department of Labor (“DOL”) issued Opinion Letter FLSA 2018-27, which rolls back the Obama-era’s enforcement of what is commonly referred to as the “80/20 Rule.” Many states allow an employer to pay a lower tipped rate to tipped service employees, such as waiters and bussers. For […]
by James L. Rudolph and Robert P. Rudolph On November 8, 2018 the Department of Labor (“DOL”) issued Opinion Letter FLSA 2018-27 which rolls back the Obama-era’s enforcement of what is commonly referred to as the “80/20 Rule.” Many states allow an employer to pay a lower tipped rate to tipped service employees, such as […]
