Department of Labor (DOL) Issues New Guidance on Tipped Employees

The Department of Labor (DOL) recently updated its guidance for employers who have tipped employees (restaurant and hospitality workers) that make an hourly wage less than the minimum wage. In these instances, where a server is making $2.13 per hour plus tips, DOL is now REQUIRING employers to make these tipped employees aware that the employer is taking a tip credit, that the credit is supplementing the minimum wage, and that those tips are the property of the employee. These regulations are not new-the new part is requiring employers to disclose, either verbally or in writing, these facts. The National Restaurant Association is recommending that all tipped employees be required to sign the disclosure with the employer retaining a copy at the time of their hire. This action is just another in a trend of the DOL to get more information and tools in the hands of employees to protect their rights. In our modern litigious society, look for this new regulation to spark more DOL complaints and lawsuits. Below is a link to the NRA website for the disclosures:

NRA Guidelines

The National Restaurant Association is currently suing the DOL because these regulations were implemented with no input from the NRA and the DOL only gave restaurants until June 4th to comply with the rules. If you have tipped employees, make sure you read and understand the new regulations.