Consumer Law

Illinois AG Backs Lawsuit Against the Federal Government Claiming Tip Regulations Hurt Employees

ILLINOIS (WAND) – Illinois Attorney General Kwame Raoul is part of a lawsuit looking to protect tipped workers from what he called a federal effort to “transport employees’ tips to their employers.” 

In December, the U.S. Department of Labor announced a final rule for tip regulations under the Fair Labor Standards Act. Raoul’s office one of their decisions eliminates the 80/20 rule, which caps the amount of time a tipped employee can spend on non-tipped, related duties to 20 percent. 

This is significant when the federal minimum wage ($7.25) and Illinois minimum wage ($11) are considered. Employers have the option of paying a lower wage of $2.83 and taking a credit for the difference with tips earned by employees. With the 80/20 rule on the way out, employers can give employees more non-tipped work while still taking the tip credit.

Read more.

Leave a Review or Comment

Back to top button