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Wages

What is The 80/20 Rule for Tipped Employees and Important Upcoming Changes to The Rule

By | Class Action, Employee, Labor Law, News & Announcements, Wages | No Comments

The Fair Labor Standards Act (FLSA), a federal law that regulates employees’ wages, requires generally that employers pay employees at least the Federal minimum wage per hour. Section 3(m) of the FLSA allows an employer that meets certain requirements to count a limited amount of the tips its “tipped employees” receive as a credit toward the employer’s Federal minimum wage obligation. This is why restaurants…

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