New DOL Tip Rule Would Cost Workers $700M, Group Says

Law360 (December 2, 2019, 7:01 PM EST) -- The U.S. Department of Labor's plan to lift a limit on the amount of cleaning and other nontipped tasks service workers can do and still be paid the lower "tipped" minimum wage will cost workers hundreds of millions of dollars, a workers' advocacy group said.

The liberal Economic Policy Institute said Saturday the agency's proposal to do away with the so-called 80-20 rule will lead businesses to shift nearly a quarter-million workers to the $2.13 per hour tipped wage, costing them more than $700 million. The rule bars businesses from paying workers the lower wage if they spend more than 20...

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