Skip to content

Changes for Tipped Workers Closer to Final Approval

March 22, 2022

The Independent Regulatory Review Commission (IRRC) has unanimously approved a Department of Labor & Industry regulation to raise pay for those who receive a “tipped minimum wage.” Under the updated regulation, the amount in tips a worker must receive monthly would increase from $30 to $135 before the employer can pay that employee the tipped wage of $2.83/hour.

Additional changes under the updated regulations are as follows:

  • Aligns the 80/20 rule for employer tip credits with recently-updated federal regulations
  • Allows for tip pooling with certain restrictions for manager and business owners
  • Prohibits employers from deducting processing fees from employee tips
  • Requires businesses to clarify that service charges are not gratuities for tipped employees

Upon approval by the Office of Attorney General, the updates will go into effect in 90 days.

Click here for more details.

Scroll To Top