Small Business Labor Roundtable on DOL’s Proposed Rule on Tip Credits
Small Business Labor Roundtable
on DOL’s Proposed Rule on Tip Credits
Tuesday, August 3, 2021
3:00 p.m. – 5:00 p.m. (Eastern Time)
Via Teams Webinar
The next U.S. Small Business Administration, Office of Advocacy Labor Roundtable will meet virtually to discuss the following topic, DOL’s Proposed Rule on Tip Credits, beginning at 3 p.m. (EST) on Tuesday, August 3, 2021. The meeting will be held using the Microsoft Teams platform.
Send your RSVP to Janis.Reyes@sba.gov. A meeting link will be provided to you when you RSVP.
- Welcome and Introduction
(3:00 p.m. – 3:05 p.m.)
Janis Reyes, Assistant Chief Counsel, SBA Office of Advocacy
- U.S. Department of Labor’s (DOL) Briefing on the Proposed Rule on Tip Credit Regulations
(3:05 p.m. – 3:20 p.m.)
Jessica Looman, Principal Deputy Administrator, Wage and Hour Division, DOL
Ms. Looman will provide a brief description of this new regulation. Please note that during the roundtable we will not be seeking any collective consensus on the rule and any comments made during this roundtable will not be considered official comments in this rulemaking process.
- A Discussion of DOL’s Proposed Rule on Tip Credits and Impacts on Small Businesses
(3:20 p.m. – 3:30 p.m.)
Angelo Amador, Senior Vice President of Legal Advocacy and Regulatory Counsel, National Restaurant Association
Mr. Amador is Senior Vice President of Legal Advocacy and Regulatory Counsel for the National Restaurant Association. He also is Executive Director of the Restaurant Law Center, an independent public policy organization affiliated with the Association that represents the industry before the courts and federal regulatory agencies. Mr. Amador serves as chief litigation officer for the Association, prioritizing legal matters to be pursued through amicus briefs or first party litigation. As Executive Director of the Restaurant Law Center, he also represents the interests of the restaurant and foodservice industry by advocating before regulatory agencies; testifying at public hearings; drafting and filing regulatory comments; and, when necessary, recommending and managing legal challenges. There are almost half a million small restaurants that employ over 7.8 million Americans.
- Small Business Feedback/ Discussion on Proposed Rule (3:30 p.m.-5:00 p.m.)
- Adjourn (5:00 p.m.)
- On June 21, 2021, DOL released a proposed rule making changes to the tip credit regulations under the Fair Labor Standards Act (FLSA). The tip credit allows an employer to count a portion of customers’ gratuities for service employees toward the minimum wage.
- The Department is withdrawing a portion of the 2020 Tip Credit final rule that covers when employers can take the tip credit for tipped employees performing “dual jobs,” or both tipped and non-tipped duties.
- The agency is reverting to the prior 80/20 rule, where an employer can only take a tip credit on work that directly supports tip-producing work if it is less than 20 percent of all hours worked during the work week. Additionally, this work that directly supports tip-producing work must be less than 30 continuous minutes to qualify for the tip credit. The proposal also clarifies what is considered tip work, work that directly supports tip-producing work, and non-tipped work.
Comments on this proposed rule are due by August 23, 2021. Read the Federal Register notice and submit written comments. https://www.federalregister.gov/documents/2021/06/23/2021-13262/tip-regulations-under-the-fair-labor-standards-act-flsa-partial-withdrawal
Advocacy contact: Janis Reyes at 202-619-0312.
* Roundtable meetings are open to all interested persons, except the press, in order to facilitate an open and frank discussion about issues of interest to small business. Agendas and presentations are available to all, including the press. Anyone who would like to receive roundtable agendas or presentations, or be included in the regular distribution, should contact Janis.Reyes@sba.gov, The purpose of these roundtable meetings is to exchange opinions, facts, and information and to obtain the attendees’ individual views and opinions regarding regulatory and policy issues affecting small business. The meetings are not intended to communicate or achieve any consensus positions of the attendees.