The Tipping Point: EEOC Final Rule

For those in the bar and/or restaurant business, you may have already heard about the Equal Employment Opportunity Commission’s (“EEOC”) final rule on tipping. In a recent opinion letter, the Wage and Hour Division (“WHD”) offered guidance on calculating overtime pay as related to tips, automatic gratuities, and service charges for an employee who works as a server and bartender within the same workweek. The letter covers “weighted average rate” as applied more broadly to “two or more different types of work” in a single workweek.