Your employee works multiple positions. Use this chart to determine when and how to take the Tip Credit:
Time spent on tasks that produce tips | You can take a tip credit for this time |
Time spent on tasks directly supporting tip-producing work | You can take a tip credit for the time performing non-tip work which does not exceed (i) 20% of the total time worked in the workweek or (ii) 30 continuous-minutes. |
Time spent on tasks that are not part of the “tipped” occupation (i.e., other job duties like cleaning restrooms or restocking) | You cannot take a tip credit for this time |
Make sure you track your tipped employee’s “working time” in the three ways discussed above.
Reach out to our legal team if you have additional questions or need help complying with the expanded 80/20 Rule.