LEGAL UPDATE
DOL Delays Tip Credit and Independent Contractor Rules By Christopher T. Vrountas, Esq. and Allison C. Ayer, Esquire, Vrountas, Ayer & Chandler, P.C.
The U.S. Department of Labor (“DOL”) recently
Tip Credit Regulations
announced the delay of the effective date of a pair of important regulations published at the
The Federal tip credit regulations propounded
end
These
at the end of 2020 contain three essential
regulations were propounded in December
elements. Here are the essential elements of
2020, and early January 2021, respectively, right
the regulations as they are currently written:
of
the
Trump
administration.
before President Biden’s inauguration. Just when
First,
the pandemic seemed to be coming under
regulations prohibit employers from keeping
control and employers thought they might
tips received by their employees, regardless of
have more certainty about the future, the
whether the employer takes a tip credit under
DOL’s action suggests the potential for more
the Fair Labor Standards Act.
the
December
2020
tip
credit
changes in the near future. www.nhlra.com | 9
