Demystifying the New 80/20 Tipping Rule: A Five-Step Plan to Ensure Compliance

2 Min Read By Peter Lambros

At a dizzying 137 pages long, the 80/20 tipping rule was signed into legislation in October. Taking effect on December 28, 2021, the rule is proving confusing to owners, operators, and tip-producing and non-tip producing employees (especially since often that employee is one and the same within any given shift). Whether or not the law is repealed, it’s being enforced now and restaurant owners and operators need to get up to speed, and fast, to ensure they get--and stay--in compliance.

What Does it Mean?The rule stipulates that workers can only be paid the tipped minimum ($2.13 per hour under federal law) for tasks that directly support tipped work and comprise no more than 20% (or 30 consecutive minutes) of a worker’s time. 

But What Does it Mean???The rule looks at workers through the lens of three main types of work: tip-producing work (serving guests), work that directly supports tip-producing work (preparing to serve guests), and work that is not tip-producing (back-of house…