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DOL Allows Certain Parts of Tip-Sharing Rule to Take Effect

March 25, 2021


Aprovision in a final rule that prohibits employers from taking any portion of workers’ gratuities will take effect on April 30, according to the U.S. Department of Labor (DOL). However, the department wants to change or delay other aspects of the rule.

Former President Donald Trump’s administration issued a final rule amending the Fair Labor Standards Act’s (FLSA’s) requirements for tipped workers, which was scheduled to take effect on March 1. President Joe Biden’s administration asked federal agencies to freeze proposed and pending regulations to give new leaders time to review pending rules, and the DOL delayed the tip-sharing rule until April 30.

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