The agency did away with guidance that stated how much time employees can spend on non-tipped duties if their employer is taking a tip credit.
November 10, 2026
• less than 3 min read
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The Department of Labor (DOL) recently moved away from longstanding guidance for employers that claim tip credits under the Fair Labor Standards Act (FLSA).
That guidance, known as “80/20,” stated that employers can’t take tip credits if their employees spend more than 20% of their time on duties for which they don’t receive tips, such as cleaning or setting tables. The guidance was codified in a rule issued by President Joe Biden’s administration in 2020, but that regulation was vacated by a federal appeals court in 2024.
The DOL withdrew three opinion letters dating back to the late 1970s and 1980s that formed the basis for the 80/20 guidance, per an Oct. 19 field assistance bulletin from Andrew Rogers, administrator for the agency’s Wage and Hour Division. Rogers noted that the 80/20 guidance was removed from DOL’s Field Operations Handbook in January 2025 in light of the Biden-era rule being invalidated.
He also noted that the DOL plans to issue a proposed rule “to amend various regulations for tipped employees...
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