On February 15, 2019, the U.S. Department of Labor issued Field Assistance Bulletin No. 2019-2, providing additional guidance for Wage and Hour Division staff regarding how to apply tip credit rules for employees who perform both tip-generating work (like taking orders and serving) and other duties. We provided an overview of the DOL’s position on the issue in an earlier post (“What Duties Can a Server Perform Under the Tip Credit Rules?“).
This latest bulletin doesn’t break new ground, but does provide a useful summary of the DOL’s current take on how the tip credit under FLSA Section 3(m) applies to employees who perform differing tasks for an employer. It’s worth a read for any employers in the hospitality industry. Keep in mind – the DOL’s revised position may not carry the day in litigation, and state laws may vary.