A new ruling from the federal Department of Labor updates guidance for businesses whose employees rely on tips for some or all of their wages. In the past, employers were required to pay tipped employees minimum wage for every hour worked that didn’t produce tips, if those hours were in excess of 20% of the employee’s workweek. For tip-producing work, employers are eligible to take a “tip-credit,” reducing the staff member’s hourly rate to adjust for any tips received.

Under the old rule, job duties were in two categories: work that directly produced tips and work that did not directly

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