Tipping the Scale: The New 80/20 Rule

September 16, 2024

The Fifth Circuit Court of Appeals struck down the 80-20 labor rule, which regulates the amount of time that tipped employees can spend performing work that does not directly generate tips. Businesses with tipped employees have long struggled with implementing the DOL's final rule that disallowed the tip credit if employees spent too much time performing duties related to their so-called tip producing duties.