If you have tipped employees on your payroll, remember to evaluate what they are doing, when and for how much time! An issue with tip credit can certainly come to the forefront with these types of employees when such employees hold "dual jobs" within the organization:  one tipped and one not tipped.   

When an employee is employed in both a tipped and a non-tipped occupation with the same employer, the tip credit is available only for the hours spent by the employee in the tipped occupation. Please note that the FLSA permits an employer to take the tip credit for some time that the tipped employee spends in duties related to the tipped occupation, even though some duties are not by themselves directly related to producing tips.  For example, a waitperson who spends some time cleaning, setting up tables and getting a restaurant ready for opening is considered to be engaged in a tipped occupation even though these duties are not tip producing. 

However, where a tipped employee spends a substantial amount of time (in excess of 20 percent of the workweek) performing related duties, no tip credit may be taken for the time spent in such duties. 

Should you have any further questions, please contact a PSB Attorney of your choice.  

 Just a few compliance dates to remember: 

• VETS 4212 filing was due September 30. 

 

• MLR rebate checks under the ACA: 
  Insurers are required to issue rebates no later than September 30 to enrolled members or groups if this percentage does not meet minimum standards set forth under the ACA. 

 

 

• October 15: Medicare Part D notices must be sent on or before this date.