DOL Final Tip Credit Rule is Year-End Regulatory Victory for the Restaurant Industry

Washington, D.C. – The National Restaurant Association applauds the U.S. Department of Labor (DOL) final rule revising tipping regulations under the Fair Labor Standards Act (FLSA). The Association and its affiliate the Restaurant Law Center (RLC) advocated for many of the changes enacted in the final rule.

Significantly, the final rule brings tipping rules into greater alignment with the FLSA; creates a more practical and workable standard for restaurant operators and employees with guardrails to ensure compliance; and helps bring parity to back-of-house workers who are also contributing to the overall customer experience.

“The DOL final rule is a year-end victory for the restaurant industry and its workers after years of litigation,” said Shannon Meade, vice president of Public Policy and Legal Advocacy for the National Restaurant Association. “The changes bring much needed regulatory clarification for the small business owners and their employees about what the law allows and requires. Moreover, it completes the Association’s regulatory agenda to achieve sensible regulations on federal overtime and joint employer standards. At a time when the restaurant industry is faced with instability, this rule provides renewed sensible regulations on tip-pooling and tip-credit standards.”

Read the Association/RLC comments submitted on behalf of the industry here and review the final rule on the DOL website here.