Law360 (July 7, 2021, 6:08 p.m. EDT) - On June 21, the Department of Labor announced it was proposing new rules and seeking comments on key restrictions on an employer's ability to use the tip credit. [1]
For your information, currently the Federal Labor Standards Act (and many state laws) allows some employers to use the tip balance on a worker's salary for tips, which means they can pay the worker a lower minimum wage as long as the worker tips the Difference between the lowest basic salary and the local standard minimum wage.
The DOL suggests that when an employee is working ...
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