Let’s ‘Ketchup’ on Latest DOL Guidance for Tipped Employees

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During the Trump administration, the U.S. Department of Labor (DOL) issued guidance governing tipped employees, providing long-awaited clarification on wage and hour issues such as (1) when nontipped employees can share in a mandatory tip pool, (2) what constitutes wrongfully “keeping” an employee’s tips, and (3) when employers may take a tip credit. The regulations were originally slated to go into effect on March 1, 2021, but the Biden administration delayed enactment until April 30 so the DOL could review related law, policy, and fact issues.

If the final rule is permitted to take effect, it could

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