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Department of Labor Announces Dual Jobs Rule for Tipped Employees | Ballard Spahr LLP

The Department of Labor (“DOL”) announced publication of the Dual Jobs final rule. This rule finalizes the DOL’s proposal to withdraw one portion of the Fair Labor Standards Act.

Department of Labor Releases Dual Jobs Final Rule

U.S. Department of Labor DOL released a final rule that may cause many employers in the restaurant, hospitality, and service industries to rethink and/or end their use of tip credits under the federal Fair Labor Standards Act FLSA.

DOL Seeks to Delay Tip Regulations

Thursday, February 11, 2021 One day after President Biden entered office, the White House issued a memorandum directing all agencies to review, and consider delaying, any rules that had been issued by the former administration but that were not yet effective. Following that directive, the U.S. Department of Labor (DOL) has proposed delaying the effective dates of the recently-issued Tip Regulations and Independent Contractor Final Rules. Under the proposal, the effective dates of these Final Rules would be postponed 60 days, from March 1, 2021 to April 30, 2021 for the Tip Regulations Final Rule and from March 8, 2021 to May 7, 2021 for the Independent Contractor Final Rule.

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