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National Restaurant Association - DOL changes tip-credit regulations

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DOL changes tip-credit regulations

The National Restaurant Association yesterday sent information to its members about new U.S. Department of Labor regulations that significantly expand employers' obligations to provide notice to employees about the tip credit.

The DOL announced the final rule April 5, making substantive changes to federal regulations without the benefit of a notice-and-comment period to collect industry feedback.

The National Restaurant Association and the Council of State Restaurant Associations last month jointly asked for a 120-day delay in implementation of the final rule in order to get feedback from the industry. The Association met with DOL May 3 to reiterate concerns about the rule and ask the agency to either withdraw or delay the regulation so the DOL can understand the industry's concerns.

It appears that the DOL will not grant a delay. Thus, the Association is looking into other channels, including litigation, to delay the rule's implementation and future enforcement until the industry's concerns are addressed.

In the meantime, while the NRA cannot provide legal advice, we recommend in our memo to members that operators make immediate attempts to comply in good faith with the new requirements while we await further clarification.

Visit www.restaurant.org/tips for information on the new regulations.

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