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SOUTHEAST TEXAS RECORD

Thursday, September 19, 2024

Post 80/20/30 Landscape? What is Next for the Hospitality Industry? on September 12, 2024

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Virtual Meeting | Unsplash by Sigmund

Date & Time        Thursday, September 12, 2024    |    10:00 am-11:00 am PDT   |   Webinar    

On August 23, 2024, the Fifth Circuit Court of Appeals vacated the Department of Labor's 2021 regulations codifying the 80/20/30 rule. The 80/20/30 rule required employers who applied a tip credit towards their employees’ wages to track the duties these employees performed and to categorize the work into three different buckets: (1) “tip-producing” work that “provides service to customers for which tipped employees receive tips”; (2) “directly supporting” work that is “performed in preparation of or to otherwise assist tip-producing customer service work”; and (3) work that is “not part of the tipped occupation.”

The 80/20/30 regulation also established a new rule that provided that an employer could not apply a tip credit towards an employee’s wages when the employee spent either (1) more than 30 continuous minutes; or (2) more than 20% of the hours in the workweek for which the employer had taken a tip credit in the second category of “directly supporting” duties. In this webinar we will discuss this important decision, the effect of this decision on hospitality employers, ways we expect the plaintiffs’ bar will react to the decision, states that have codified their own version of the 80/20/30 rule, and where we see the future of the federal tip credit.

Original source can be found here.

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