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Course Details

Course Information
  • smart_display Format

    On-Demand

  • signal_cellular_alt Difficulty Level

  • work Practice Area

    Employment and Workers Comp

Date & Time
  • event Date

    Wednesday, May 18, 2022

  • schedule Time

    1:00 p.m. ET./10:00 a.m. PT

  • timer Program Length

    90 minutes

Credit Information

  • This 90-minute webinar is eligible in most states for 1.5 CLE credits.

$297.00

This course is $0 with these passes:

CLE
ALL

This CLE course will guide employment counsel in handling wage and hour issues for tipped employees. The DOL has reinstated the "80/20" tip credit rule and provided clarifying definitions of tip-producing vs. directly supporting work. The panel will discuss job duties that may qualify as "tipped work" and the recent federal court decision that denied the Restaurant Law Center's request to invalidate the new rule. The panel will address best practices for hospitality employers in calculating wages for tipped employees under the new rule.

Faculty

Heather A. Bailey
Partner; Co-Chair Labor and Employment Practice Group
SmithAmundsen, LLC

For 20 years, Ms. Bailey has concentrated her practice in employment and labor counseling and litigation, including discrimination and trade secret/noncompete lawsuits, FLSA class actions, labor negotiations and arbitrations, affirmative action, OFCCP/DOL audits, and FINRA issues. She counsels on day-to-day operations, human resources, and management decisions regarding employees, practices and policies. Ms. Bailey also works comfortably with FMLA/ADA, sexual harassment, affirmative action, union avoidance, and other types of employee and management training. Her clients operate across the U.S. in industries like vending, healthcare, transportation, parking, automotive repair, construction, staffing, hospitality (restaurants/taverns), banking, nonprofits, IT, and manufacturing to name a few. As a thought leader in the labor and employment industry Ms. Bailey if a frequent author and lecturer.

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Daniel B. Boatright
Co-Chair, Hospitality Industry Group
Littler Mendelson PC

Mr. Boatright has represented employers in hundreds of matters in state and federal courts and before administrative agencies such as the Equal Employment Opportunity Commission and the Department of Labor. Working with restaurants, retailers, and public sector employers, he has experience with claims across the full spectrum of employment law, including defense of numerous multiple plaintiff and collective/class action lawsuits. Mr. Boatright has specific experience with claims involving the Fair Labor Standards Act, Age Discrimination in Employment Act, Title VII, and the Americans with Disabilities Act.

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Description

The new Dual Jobs Final Rule, which was published in the Federal Register on Oct. 29, 2021, and became effective Dec. 28, 2021, essentially matches the notice of proposed rulemaking (NPRM) published in June 2021. Although the DOL acknowledged the pandemic's impact on the restaurant, hospitality, and service industries, the final rule likely will exacerbate challenges in higher costs and administrative headaches for employers in these sectors.

The final rule differs from the NPRM in that it (1) clarifies its definition of "tip-producing work" as encompassing "any work performed by a tipped employee that provides service to customers for which the tipped employee receives tips" and provides more examples illustrating the scope of tip-producing work, (2) amends the definition of "directly supporting work" as preparation of, or otherwise assisting, the service work that produces tips, (3) modifies the definition of work that is not part of the tipped occupation, and (4) clarifies the 80/20 calculation and the 30-minute rule.

The Dual Jobs final rule states that an employee performs work directly in support of tip-producing work for a substantial amount of time if the tipped employee's directly supporting work either (1) exceeds a "20 percent workweek tolerance" or (2) exceeds 30 minutes for any continuous period.

Employers should remember that many states and localities have their own rules regarding tip credits, and the Fair Labor Standards Act does not trump or preempt more protective state and local laws. Some states have different versions of the 80/20 rule, and some apply their 80/20 rule on a daily rather than weekly basis. Additionally, some jurisdictions do not allow employers to take a tip credit. Some have a higher sub-minimum wage for tipped employees or a higher minimum wage for non-tipped work.

Listen as our distinguished panel assists employment attorneys in interpreting the current DOL tip credit guidance. The panel will specifically discuss what types of non-tip generating work impacts whether tip credit applies and best practices for hospitality employers in tracking and calculating wages owed to tipped employees.

Outline

  1. Clarifying definitions of "tip-producing work" and "directly supporting work"
  2. Overview of the prior administration's "80/20" tip credit rule
  3. Analysis of current DOL guidance on the tip credit
  4. Calculation of wages for tipped employees under the new guidance
  5. Best practices for employment counsel in drafting and updating employment policies for tipped employees after new DOL guidance

Benefits

The panel will review these and other relevant topics:

  • What is the current DOL guidance on tip credit?
  • What types of job duties are affected by the new DOL guidance?
  • How should hospitality employers calculate wages for tipped employees in light of the new guidance?