The U.S. Department of Labor recently proposed changes to the 80/20 rule, altering what type and amount of work qualifies for the tip credit. While the hospitality industry is beginning to recover from the impact of the coronavirus pandemic, there’s also a worker shortage thanks in part to low wages and a reduction in tipping.
Restaurateur Philip Camino and chef Nyesha Arrington break down the DOL’s proposed changes to the tip credit and the impact they’ll likely have on both restaurant owners and employees. From the need to improve the employee experience to how changes in pay could impact menu prices, Nyesha and Philip provide valuable insight to get to the most important parts of the new guidelines.
Links:
Restaurant Business - DOL proposes change to 80/20 tip credit rules
Restaurant Business - DOL delays discontinuation of 80/20 rule on servers’ pay
Waller - Restaurants must be aware of the 80/20 rule
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