SimplyHR | Employment & Labor Blog 

On Nov. 8, 2018, the Department of Labor (DOL) issued an Opinion Letter reviving its 2009 guidance that eliminated the 80/20 rule for tipped workers. The rule prohibited employers and businesses from paying tipped workers below the minimum wage by way of a tip credit for non-tipped work when such work comprised more than 20 percent of their day. Under the Obama administration, the 2009 Opinion Letter was withdrawn, which restored the 80/20 rule and sparked a flurry of lawsuits alleging that tipped workers spend more than 20 percent of their time performing non-tipped work for which they did not receive the minimum wage. After finding the rule was confusing and nearly unworkable, the DOL has done away with it once again.