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B-332826 1 (2021-02-11)

handle is hein.gao/gaobaecnv0001 and id is 1 raw text is: GAO U.S. GOVERNMENT ACCOUNTABILITY OFFICE 441 G St. N.W. Washington, DC 20548 B-332826 February 11, 2021 The Honorable Patty Murray Chair The Honorable Richard Burr Ranking Member Committee on Health, Education, and Labor United States Senate The Honorable Bobby Scott Chairman The Honorable Virginia Foxx Republican Leader 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 Standards Act (FLSA) Pursuant to section 801(a)(2)(A) of title 5, United States Code, this is our report on a major rule promulgated by the Department of Labor, Office of the Secretary, Wage and Hour Division (Department) entitled Tip Regulations Under the Fair Labor Standards Act (FLSA) (RIN: 1235- AA21). We received the rule on December 30, 2020. It was published in the Federal Register as a final rule on December 30, 2020. 85 Fed. Reg. 86756. The final rule is effective March 1, 2021. The final rule amends the Department regulations to address amendments in the Consolidated Appropriations Act of 2018 prohibiting employers from retaining tips received by their employees. Pub. L. No. 115-141, div. S, title XII, § 1201, 132 Stat. 348, 1148-49 (Mar. 23, 2018). Further, the final rule amends Department regulations to reflect guidance regarding the tip credit's application to employees who perform both tipped and non-tipped duties, and revises regulations to address which non-tipped duties are related to a tip-producing occupation. According to the Department, federal law provides that an employer that satisfies certain requirements may count a limited amount of the tips received by its tipped employees as a credit toward its federal minimum wage obligation (known as a tip credit). See 29 U.S.C. § 203(m)(2)(A). The Department states the final rule would allow an employer that does not take a tip credit to require tipped employees to contribute tips to a nontraditional pool that includes back of the house employees, such as dishwashers and cooks, who are not employed in a customarily and regularly tipped occupation. The Department further states that the final rule provides that any employer that collects tips to facilitate a mandatory tip pool must fully redistribute the tips no less often than when it pays wages.

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