About Face on Independent Contractors and Tipped Employees

The DOL recently withdrew three opinion letters addressing independent contractors and tipped employees. President Biden has differed from the Trump administration on both topics and has expressed a desire to adopt a different independent contractor test and eliminate the tipped minimum wage altogether (in conjunction with raising the federal minimum wage to $15). The DOL also announced a final rule delaying portions of the 2020 Tip final rule, with the remainder of the 2020 Tip final rule becoming effective April 30, 2021.

Business Takeaway: A reminder of the significance of a change in administration with respect to developments in labor and employment law. Contact Adam at 414-446-8800 or adam@goldsteinsc.com if you have questions pertaining to independent contractors and/or the tipped minimum wage.

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