Tipped workers and the the 80/20 rule

The provisions of the Fair Labor Standards Act require most employers in Tennessee and across the country to pay their workers at a rate no less than the federal minimum wage. Workers who claim that their employers have violated these requirements are often able to support their allegations by providing documents like pay stubs and time sheets that may be difficult to refute, but these cases can be far more challenging when the workers involved are employed by a restaurant and are compensated partly in tips.

While tipped workers are not generally protected by the minimum wage provision of the law, an exception is made for workers who perform two or more jobs. In these situations, the FLSA stipulates that workers must be paid minimum wage for their non-tipped duties. However, this exemption does not apply to tip-related work such as waiters or waitresses clearing tables and replenishing condiments.

Federal wage and hour laws also requires employers to pay at least the minimum wage to tipped workers who are asked to perform work not related to their tipped duties. Such work could include cleaning restaurants, moving furniture and sweeping sidewalks. Side work that is tip related must also be compensated according to minimum wage laws when these duties occupy at least 20 percent of a worker's workweek.

The 80/20 rule is merely a Department of Labor guideline and not a federal regulation, but it has been followed by courts in two federal circuits. However, establishing a wage and hours claim based on the 80/20 rule can be challenging, and attorneys with experience in this area may urge their clients to keep accurate records of both the type of work they were asked to perform and the amount of compensation they received for performing it.

No Comments

Leave a comment
Comment Information
Free Consultation

Get Started With Your Free, No-Obligation Consultation

Let us be clear when we say "you pay us nothing unless we win." Your relationship with our law firm begins with a free consultation. You meet directly with one of our experienced lawyers. When you become our client, we never ask you to open your checkbook. We work on a contingency-fee basis, which means our fee only comes from the proceeds from a successful verdict or settlement.

Bold labels are required.

Contact Information
disclaimer.

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.

close

Privacy Policy

McCune Zenner Happell, PLLC The Parklane Building, 5200 Maryland Way Suite 120 Brentwood, TN 37027 Phone: 615-953-8337 Phone: 615-425-3476 Fax: 615-251-6958 Brentwood Law Office Map

  • The National Trial Lawyers Top 100 Trial Lawyers
  • Super Lawyers
  • The Best Lawyers in America
  • Best Lawyers Best Law Firms U S News
  • Nation's Premier NAFBA Top Ten Ranking 2014