Employers of tipped workers must follow older, stricter pay rules again

A federal court reversed a 2021 rule about how employers pay tipped workers for non-tipped tasks. This means employers must now follow the older, stricter regulations that were in place before late 2021.

The US Labor Department tried to give employers more flexibility in how they paid tipped workers for non-tipped duties. A court just removed that flexibility. This means restaurants, bars, and other businesses with tipped staff must now return to the more stringent rules that existed before 2021.