As we previously blogged about here, in the final days of the Trump Administration the Department of Labor (“DOL”) announced a series of new rules regarding how and to whom employers can distribute tips. The new rules were scheduled to go into effect on March 1, 2021. We predicted that the Biden Administration might seek to modify or at least halt the rollout of the rules once it assumed power following the inauguration. And so it has come to pass: this week, the DOL announced that it was postponing the rollout for 60 days while it reviews the new rules further. We will continue to monitor the fate of the rules and keep you updated about their status. In the meantime, if you have questions about the treatment of tips (e.g., who can and cannot receive them) please reach out to any of our attorneys.
