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On April 28, 2021, the U.S. Department of Labor (DOL) announced that it will further delay, until December 31, 2021, the effective date of portions of the previous administration’s Tip Regulations Final Rule under the Fair Labor Standards Act (FLSA). That Final Rule, issued in late December 2020, originally was scheduled to go into effect on March 30, 2021, but the DOL previously extended that deadline to April 30, 2021. Importantly, the latest delay affects only three portions of the Final Rule: two involving the DOL’s ability to assess civil money penalties (CMPs) and one addressing the so-called “20%” or “80/20” rule under the “dual jobs” provisions of the FLSA 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.