As many employers know, the “80/20 tip credit rule” has long been at thorn in the side of employers in the hospitality and restaurant industries. While federal law and a majority of states allow employers to take tip credits, the process of figuring out when you can or can’t take a tip credit is administratively burdensome for employers and overflowing with potential for liability. Tip credits are an important tool for employers because they allow employers to save mo...
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