Government Affairs

80/20 Rule

Reform the NYS Department of Labor's so called 80/20 Rule that creates significant legal and financial liability for restaurants and hurts workers who want to work more hours and gain more skills. The law prohibits an employer from taking the tip credit if an employee works more than 20% or two hours of their shift in a non-tipped job capacity. Effectively this means they can't work five hours of a shift as a bartender earning tips and then three hours doing inventory, tastings and purchasing, which is non-tipped work. If they do, they violate the 80/20 Rule and enormous financial legal and financial liability results, including loss of the tip credit, double damages and attorney fees.


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