Tipping the Scale: The New 80/20 Rule

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. Chapters 00:00 Introduction 03:01 Understanding the 80-20 Rule: History and Context 05:50 The 2021 Regulation: Key Changes and Implications 11:59 The Fifth Circuit Ruling: A Game Changer 18:13 Implications for the Restaurant Industry 23:57 Navigating State Laws and Compliance 30:08 Conclusion and Future Considerations