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National Restaurant Association - NRA offers Aug. 3 webinar on new tip-credit notice rules

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NRA offers Aug. 3 webinar on new tip-credit notice rules

A little more than two months ago, the U.S. Department of Labor put new regulations into effect changing the notice that employers must give to tip-earning employees about the tip credit.

The new rules took effect May 5 and dramatically expand the notice employers must provide to employees about the tip credit, or the portion of tip earnings that under strict conditions federal and state laws allow many employers to apply against minimum-wage obligations. The DOL put the new tip-credit notice rules into effect with only 30 days notice and without giving employers any opportunity to comment on the changes.

The NRA, Council of State Restaurant Associations and National Federation of Independent Business last month sued the DOL for violating a federal law that requires agencies writing new regulations to give affected parties a chance to comment. Our organizations have asked the court to withdraw the regulation and block the DOL from enforcing it.

The lawsuit was filed in mid-June and the DOL has until mid-August to either respond or ask for more time to respond. A final decision is unlikely for at least six months, although certain factors could either speed up or delay the timeline.

In the meantime, the National Restaurant Association encourages its members to make good-faith efforts to comply with the new regulations. We published an overview of the tip-credit notice rules in our June NRA Washington Report newsletter, and offer ongoing details at www.restaurant.org/tips.

The NRA also will offer a members-only webinar on Wed., Aug. 3, at 2 p.m. ET, to help restaurant employers understand the tip-credit notice rule and implement the new policies. The session features NRA Senior Vice President and General Counsel Peter Kilgore, and Tammy McCutchen, a wage-and-hour compliance attorney with Littler Mendelson. McCutchen is a former administrator of the DOL's Wage and Hour Division. sign up for the Aug. 3 webinar here; you will need your NRA member number to register. The webinar will be archived for members to review after the event as well.

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