Ariel Cudkowicz and Michael Steinberg Write on Impact of Fifth Circuit Vacating DOL'S 80/20 Rule for Tips in Reuters’ Westlaw Today

Seyfarth’s Ariel Cudkowicz and Michael Steinberg co-authored an article, “EXPERT INSIGHTS—TIPS FROM SEYFARTH: IN A MAJOR WIN FOR RESTAURANTS, FIFTH CIRCUIT VACATES DOL'S 80/20 RULE,” in Thomson Reuters’ Westlaw Today on September 3. The Seyfarth attorneys discussed the impact of the Fifth Circuit striking down the Department of Labor's December 2021 regulation codifying the DOL’s longstanding “80/20 rule” regarding gratuities.

“The Fifth Circuit's decision roundly rejects the 80/20 rule’s focus on whether employees’ discrete work activities are tip-producing or not, and instead concludes that the plain meaning of the statute is clear: an employer may claim the tip credit for any employee who, when engaged in her job—whatever duties the job entails—customarily and regularly receives more than $30 per month in tips.”

The full article is available here.