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Labor/Employment

Dec. 14, 2021

Changes to ‘80/20’ tip rule ahead; different but still the same

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.

Krista Mitzel

Partner
The Mitzel Group

Email: kmitzel@mitzelgroup.com

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Sara Shok

Associate
The Mitzel Group

Email: sshok@mitzelgroup.com

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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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