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Department of Labor Rescinds 80-20 Rule for Tipped Workers

Many of our customers and the businesses using our training will be affected by this ruling and we want to make sure they know about it. We urge employers to be fair and to be open in discussing issues like these with their employees.


The DOL issued an opinion letter on Thursday that eliminates the so-called 80-20 rule when it comes to paying tipped workers for non-tipped job responsibilities. The 80-20 rule said that if a tipped worker spends more than 20 percent of their time doing non-tipped work like folding napkins, or refilling salt shakers, they were required to be paid the full minimum wage for those duties. The new letter restores 2009 guidance which does not limit non-tipped work, “so long as they are performed contemporaneously with” tipped tasks.


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