Our phone lines are currently not accepting calls due to a network outage. Please email all Social Security Disability inquiries to stacy@donatilaw.com. All other inquiries can be directed to amy@donatilaw.com.

Donati Law, PLLC
  • Home
  • About Us
  • Our History
  • Our Team
    • Don Donati
    • Wanda Donati
    • William "Billy" Ryan
    • Alison Ryan
    • Bryce Ashby
    • Robert Donati
    • Ellen Donati Flechas
    • Janelle Crandall Osowski
    • Melissa Stewart
    • Ruchee J. Patel
  • Practice Areas
    • Employment Law
    • Car Accidents
    • Consumer Law
    • Civil Rights
    • Criminal Defense
    • Immigration Law
      • Resources
      • Family Immigration
      • Employment Immigration
      • Asylum & Refugee Status
    • Personal Injury
    • Social Security Disability
    • Wage & Hour Violations
    • Workers' Comp
  • COVID Resources
    • ADA Reasonable Accommodation: COVID-19
    • COVID-19 Safety Complaints & Whistleblower Protections
    • Medical and Family Leave: COVID-19
  • Blog
  • Results
  • Testimonials
  • Contact Us
(901) 209-5500

Call for Prompt Legal Assistance

    • Home
    • About Us
    • Our History
    • Our Team
      • Don Donati
      • Wanda Donati
      • William "Billy" Ryan
      • Alison Ryan
      • Bryce Ashby
      • Robert Donati
      • Ellen Donati Flechas
      • Janelle Crandall Osowski
      • Melissa Stewart
      • Ruchee J. Patel
    • Practice Areas
      • Employment Law
      • Car Accidents
      • Consumer Law
      • Civil Rights
      • Criminal Defense
      • Immigration Law
        • Resources
        • Family Immigration
        • Employment Immigration
        • Asylum & Refugee Status
      • Personal Injury
      • Social Security Disability
      • Wage & Hour Violations
      • Workers' Comp
    • COVID Resources
      • ADA Reasonable Accommodation: COVID-19
      • COVID-19 Safety Complaints & Whistleblower Protections
      • Medical and Family Leave: COVID-19
    • Blog
    • Results
    • Testimonials
    • Contact Us
  • Search
  • Contact
  • Staff
Blog /2019 /January /How Will Ending the 80/20 Rule Affect Tipped Employees?
Categories
  • ADEA
  • Affordable Care Act
  • Age Discrimination
  • Arbitration Agreements
  • At-Will Employment
  • Breach of Contract
  • Car Accident
  • Carbon Monoxide
  • Claim Management
  • Class Action
  • Commercial Appeal
  • Commission-Based Employees
  • Congress
  • Criminal Defense
  • Criminal Record
  • DACA
  • Disability
  • Disability Claim
  • Discrimination
  • DOMA
  • DREAM Act
  • EITC
  • Employee Misclassifications
  • Employment Law
  • Employment Termination
  • Estate Law
  • Expungement
  • Fair Credit Reporting Act
  • Family and Medical Leave Act
  • FAQ
  • FLSA
  • Fraud
  • Gender Discrimination
  • Government Shutdown
  • Health
  • ICE
  • Immigration
  • Immigration Law
  • Immigration Reform
  • Independent Contractor
  • Insurance
  • jones act
  • Leave & Break Rights
  • LGBT
  • Local News
  • Long Term Disability
  • Medical Malpractice
  • medicare
  • Misclassification
  • mississippi river
  • Motorcycle Accident
  • News
  • Non-Compete & Non-Disclosure Agreements
  • Overtime Wages
  • personal injury
  • President Obama
  • Qui Tam
  • Retaliation
  • Semi-Truck Accident
  • Sequential Evaluation Process
  • Severance Agreement
  • Sexual Harassment
  • Short Term Disability
  • slip and fall
  • Small Businesses
  • social security
  • Social Security Administration
  • Social Security Card
  • Social Security Disability
  • Social Security Disability Benefits
  • Social Security FAQs
  • Social Security Number
  • SSDI
  • SSI
  • State Law
  • Taxes
  • Technology
  • Tipped Employees
  • TPPA
  • Trip and Fall
  • Unemployment Benefits
  • Unlawful Presence
  • USCIS
  • veterans
  • Veterans' Benefits
  • Visa
  • Visa Bulletin
  • Wage & Hour
  • Whistleblower
  • Wills
  • Workers' Compensation
  • Workplace Retaliation
  • Wrongful Death
  • Wrongful Termination
Share This Post:

How Will Ending the 80/20 Rule Affect Tipped Employees?

Jan 16, 2019 /
Donati Law, PLLC
  • Employment Law /
  • Wage & Hour /

Since 2011, the Department of Labor (DOL) observed a policy known as the “80/20” tip credit rule. Applying to tipped employees like restaurant servers, it was intended to ensure that employers observed the Fair Labor Standards Act (FLSA) by fully compensating tip-based employees for their time spent on unrelated tasks.

Now that the DOL has officially rescinded the 80/20 rule in an internal opinion letter, what impact will it have on tipped employees? At Donati Law, PLLC, our Memphis wage and hour violation lawyers have represented many tipped employees who were not fairly compensated under the 80/20 rule, and we can help you understand your rights in light of this policy change.

Continued Confusion on 80/20 Tip Credit Rule

In service-based industries, American employers can legally pay workers less than minimum wage and claim a “tip credit” – provided that their employees are receiving enough compensation from tips to make up the difference. To hold employers accountable for paying tipped employees appropriately, the Obama-era DOL instituted the 80/20 tip credit rule. If an employee spent 20% or more of their time doing “non-tip-generating activities,” they would be eligible for minimum wage during those hours.

However, many employers complained that the 80/20 tip credit rule was too confusing, as it didn’t clearly define all the tasks considered to be non-tip-generating. There was widespread legal disagreement about how directly a specific task could impact tip prospects. As a result, the 80/20 tip credit rule spawned hundreds of civil lawsuits against employers.

Ramifications of Removing the 80/20 Rule

Claiming that the 80/20 tip credit rule was too confusing for everyone, the DOL has now effectively eliminated this policy, and attempted to offer some clarity in Opinion Letter FLSA2018-27. But although removing the rule may bring relief to employers, it also means they will have to be even more diligent about correctly classifying and tracking employee hours to comply with the FLSA.

Employers will now have to determine if each employee has “dual jobs.” If a waiter spends time cleaning tables, that would still be considered a tip-generating-activity, as it is part of his core job description. However, if that same waiter also performs maintenance work, he could be eligible for minimum wage during those hours. It’s easy to see how unfair employers could use this broad definition to their advantage, purposely classifying certain tasks to avoid losing their tip credit.

Fearless Representation for Wage and Hour Violations

If you believe that your employer has failed to properly account for your dual job, you could still have grounds to sue them under the Fair Labor Standards Act. Our Memphis employment lawyers are passionate about helping workers who have been paid unfairly, and we can apply more than 35 years of experience to your case.

Contact us today or call at (901) 209-5500 for a consultation with our compassionate attorneys!

Previous Next



Every Client is a Cause We Believe In

To discuss your case with an accomplished attorney who cares, give our firm a call at (901) 209-5500 or fill out the form below.

  • Please enter your name.
  • This isn't a valid email address.
    Please enter your email.
  • This isn't a valid phone number.
    Please enter your phone number.
  • Please make a selection.
  • Please make a selection.
  • Please enter a message.

Memphis

1545 Union Avenue
Memphis, TN 38104

(901) 209-5500

Memphis

1545 Union Avenue
Memphis, TN 38104
View Map

Phone: (901) 209-5500

Quick Links

  • Home
  • Contact Us
  • Site Map
  • Privacy Policy

Stay Connected

  • Instagram
  • YouTube
  • Facebook
  • Google Business Profile
En EspaƱol

Contact Us

Donati Law, PLLC
Memphis Attorneys

1545 Union Avenue
Memphis, TN 38104
View Map

Call Today

(901) 209-5500

Local
https://www.donatilaw.com/

Seeking Justice One Client at a Time

Contact Us Now
Internet Marketing Experts The information on this website is for general information purposes only. Nothing on this site should be taken as legal advice for any individual case or situation. This information is not intended to create, and receipt or viewing does not constitute, an attorney-client relationship.
© All Rights Reserved.
Powered by Scorpion