Biden Administration Unveils Proposal To Limit Nontipped Tasks By Tipped Employees

Employers who love to overly use tipped workers for a variety of non-tipped chores got some bad news today.

Reuters reports:

“The U.S. Department of Labor unveiled a proposal Monday that would prohibit businesses from paying workers the $2.13 tipped minimum wage for nontipped tasks that take more than 30 minutes or are not directly related to their tipped work.

DOL’s Wage and Hour Division (WHD) in a proposal in the Federal Register moved to withdraw a Trump-era rule that would have made it easier to pay the lower minimum wage for nontipped work, and replace it with the more strict standard.

The proposal would allow restaurants and other businesses to only pay the tipped minimum wage for tasks that ‘directly support tip-producing work, provided the directly supporting work is not performed for a substantial amount of time.’

WHD said a substantial amount of time should be defined as more than 30 consecutive minutes or 20% of the hours an employee works in a given week.

The agency in the proposal said it was important to provide a clear limitation on the amount of nontipped work that tipped employees can perform and still be considered to be in a tipped occupation.”

For the rest of the story, visit Reuters here.

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