Just as court-ordered changes to Michigan's paid sick leave and minimum wage laws were set to take effect, legislators passed a last-minute compromise intended to respond to the concerns of small businesses and tipped workers.
The Department of Labor has formally rescinded a 2021 rule that made it more difficult for employers to claim a minimum wage tip credit under the Fair Labor Standards Act (FLSA).
Often referred to as the "80/20 plus 30 rule," the Fair Labor Standards Act regulation made it more difficult for employers to claim a minimum wage tip credit.
The Michigan Supreme Court has struck down the state's current minimum wage and paid sick leave laws and replaced them with earlier versions of the laws that are significantly more beneficial to employees.
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News: HR guidance on complying with the federal and state requirements for the minimum wage tip credit.