DOL To Allow Some Parts of Tip Regulation To Take Effect While Proposing Changes To Other Parts

On March 23, 2021, the Department of Labor's Wage and Hour Administration unveiled two notices of proposed rulemaking related to the final tip regulations that DOL had published in December. The two proposals are scheduled to be published in the Federal Register on March 25.

In short, DOL will allow much of the final rule to go into effect, especially those parts that closely track statutory changes made by Congress. However, DOL is proposing to further delay several other provisions while it simultaneously considers changes to provisions related to when tipped workers perform dual jobs or related duties. DOL is also reconsidering provisions related to issuance of civil money penalties. DOL also seeks comments on some parts of the rule that will go into effect, such as the definition of "managers and supervisors." CWC will publish further analysis in the near future.