August 16, 2019 / 8:58 PM / 2 months ago

Judge says DOL guidance on tipping did not replace '80/20 rule'

A federal judge in Philadelphia has ruled that recent U.S. Department of Labor guidance giving employers more leeway to pay workers the tipped minimum wage for nontipped tasks is “unreasonable,” and did not replace an older standard criticized by business groups.

U.S. District Judge Anita Brody on Thursday declined to apply DOL guidance issued since last November to a wage-and-hour lawsuit against PF Chang’s China Bistro Inc, and denied the company’s bid to toss the proposed class action. She said the agency’s interpretation of the federal Fair Labor Standards Act (FLSA) clashed with a 1967 DOL regulation governing the payment of workers with “dual jobs,” one tipped and one nontipped.

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