GAO reviewed the Department of Labor, Office of the Secretary, Wage and Hour Division's (Department) new rule entitled "Tip Regulations Under the Fair Labor Standards Act (FLSA); Partial Withdrawal." GAO found that the final rule (1) finalizes its proposal to withdraw one portion of the "Tip Regulations Under the Fair Labor Standards Act" (FLSA) and finalizes its proposed revisions related to the determination of when a tipped employee is employed in dual jobs under FLSA; and (2) amends its regulations to clarify that an employer may only take a tip credit when its tipped employees perform work that is part of the employee's tipped occupation.
Enclosed is our assessment of the Department's compliance with the procedural steps required by section 801(a)(1)(B)(i) through (iv) of title 5 with respect to the rule. If you have any questions about this report or wish to contact GAO officials responsible for the evaluation work relating to the subject matter of the rule, please contact Shari Brewster, Assistant General Counsel, at (202) 512-6398.
B-333718
November 3, 2021
The Honorable Patty Murray
Chair
The Honorable Richard Burr
Ranking Member
Committee on Health, Education, Labor, and Pensions
United States Senate
The Honorable Robert C. “Bobby” Scott
Chairman
The Honorable Virginia Foxx
Ranking Member
Committee on Education and Labor
House of Representatives
Subject: Department of Labor, Office of the Secretary, Wage and Hour Division: Tip Regulations Under the Fair Labor...
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