Restaurant servers typically depend on tips for the majority of their earnings. | Image Source: freepik.com - Credit: davit85
Restaurant servers typically depend on tips for the majority of their earnings. | Image Source: freepik.com - Credit: davit85
A coalition of attorneys general, joined by Michigan Attorney General Dana Nessel, has filed a last-ditch effort to stop employers from withholding tips from employees.
The lawsuit challenges the U.S. Department of Labor rule that eliminates the "80/20 Rule," which has protected tipped employees in the past, according to the Department of the Attorney General at Michigan.gov. This rule ensures that all workers making $3.67 or less -- which is possible due to a "tip credit" -- spend at least 80% of their time doing work for which they can typically expect tips.
The new rule would eliminate the 20% cap on non-tipped work, which could seriously cut into their earnings.
Attorney General Dana Nessel
| Michigan.gov
"This rule stands to hurt at least 100,000 service workers in Michigan who rely heavily on tips to care for their families. The pandemic has already caused an uphill battle for the service industry, and finalizing a rule that further impedes their ability to earn a living is unconscionable,” Nessel said, according to Michigan.gov.
The rule contradicts the purpose of the Fair Labor Standards Act, which establishes protections for the workplace, including minimum wage and overtime.
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