{"id":6427,"date":"2026-10-14T16:27:12","date_gmt":"2026-10-14T21:27:12","guid":{"rendered":"https:\/\/www.employco.com\/blog\/?p=6427"},"modified":"2026-10-14T16:27:15","modified_gmt":"2026-10-14T21:27:15","slug":"hr-newsletter-complying-with-flsa-tip-regulations","status":"publish","type":"post","link":"https:\/\/www.employco.com\/blog\/2026\/10\/14\/hr-newsletter-complying-with-flsa-tip-regulations\/","title":{"rendered":"HR Newsletter: Complying With FLSA Tip Regulations"},"content":{"rendered":"\n<figure class=\"wp-block-image size-large\"><img decoding=\"async\" src=\"https:\/\/www.employco.com\/images\/newsletter\/HR\/Blog\/October2026_Tip-Regulations.jpg\" alt=\"HR Newsletter: Complying With FLSA Tip Regulations\"\/><\/figure>\n\n\n\n<div style=\"height:25px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<p class=\"wp-block-paragraph\">Tipped employees are common in restaurants, hotels, salons, and other service industries. The Fair Labor Standards Act (FLSA) imposes specific wage and hour rules that apply only to tipped workers. These rules include specific requirements for calculating minimum wage and overtime pay for tipped employees, restricting which workers may share in tip pools and addressing mandatory service charges.<\/p>\n\n\n\n<!--more-->\n\n\n\n<p class=\"wp-block-paragraph\">Tip-related violations are a frequent source of administrative investigations and private lawsuits. Failure to comply with the FLSA\u2019s tip requirements can lead to costly investigations, civil penalties, back wages and liquidated damages liabilities, and reputational harm. Establishing best practices can help employers reduce legal risks and stay compliant with the FLSA\u2019s wage and hour requirements for tipped workers.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">This HR Compliance Overview provides employers with a general overview of the FLSA\u2019s tip regulations and outlines best practices to help them develop and maintain compliant employment practices: <a href=\"https:\/\/www.employco.com\/PDFs\/October2026_Compliance-Overview-2.pdf\" target=\"_blank\" rel=\"noreferrer noopener\">Best Practices for Complying with FLSA Tip Regulations<\/a>.<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><a href=\"https:\/\/www.employco.com\/PDFs\/October2026_Compliance-Overview-2.pdf\" target=\"_blank\" rel=\" noopener\"><img decoding=\"async\" src=\"https:\/\/www.employco.com\/images\/newsletter\/HR\/Blog\/October2026_Compliance-Overview-2-PDF.jpg\" alt=\"Best Practices for Complying with FLSA Tip Regulations\"\/><\/a><\/figure>\n\n\n\n<div style=\"height:25px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n","protected":false},"excerpt":{"rendered":"<p>Tipped employees are common in restaurants, hotels, salons, and other service industries. The Fair Labor Standards Act (FLSA) imposes specific wage and hour rules that apply only to tipped workers. These rules include specific requirements for calculating minimum wage and&hellip;  <\/p>\n<p class=\"more-link\"><a href=\"https:\/\/www.employco.com\/blog\/2026\/10\/14\/hr-newsletter-complying-with-flsa-tip-regulations\/\">Continue reading <span class=\"meta-nav\">&rarr;<\/span><\/a><\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_feature_clip_id":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_post_was_ever_published":false},"categories":[31],"tags":[],"class_list":["post-6427","post","type-post","status-publish","format-standard","hentry","category-hr-newsletter"],"featured_image_src":null,"author_info":{"display_name":"Employco USA","author_link":"https:\/\/www.employco.com\/blog\/author\/employcousa\/"},"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v28.3 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\r\n<title>HR Newsletter: Complying With FLSA Tip Regulations - Employco Blog<\/title>\r\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\r\n<link rel=\"canonical\" href=\"https:\/\/www.employco.com\/blog\/2026\/10\/14\/hr-newsletter-complying-with-flsa-tip-regulations\/\" \/>\r\n<meta property=\"og:locale\" content=\"en_US\" \/>\r\n<meta property=\"og:type\" content=\"article\" \/>\r\n<meta property=\"og:title\" content=\"HR Newsletter: Complying With FLSA Tip Regulations - Employco Blog\" \/>\r\n<meta property=\"og:description\" content=\"Tipped employees are common in restaurants, hotels, salons, and other service industries. The Fair Labor Standards Act (FLSA) imposes specific wage and hour rules that apply only to tipped workers. These rules include specific requirements for calculating minimum wage and&hellip; Continue reading &rarr;\" \/>\r\n<meta property=\"og:url\" content=\"https:\/\/www.employco.com\/blog\/2026\/10\/14\/hr-newsletter-complying-with-flsa-tip-regulations\/\" \/>\r\n<meta property=\"og:site_name\" content=\"Employco Blog\" \/>\r\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/Employco\" \/>\r\n<meta property=\"article:published_time\" content=\"2026-10-14T21:27:12+00:00\" \/>\r\n<meta property=\"article:modified_time\" content=\"2026-10-14T21:27:15+00:00\" \/>\r\n<meta property=\"og:image\" content=\"https:\/\/www.employco.com\/images\/newsletter\/HR\/Blog\/October2026_Tip-Regulations.jpg\" \/>\r\n<meta name=\"author\" content=\"Employco USA\" \/>\r\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\r\n<meta name=\"twitter:creator\" content=\"@employco\" \/>\r\n<meta name=\"twitter:site\" content=\"@employco\" \/>\r\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Employco USA\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"2 minutes\" \/>\r\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\\\/\\\/www.employco.com\\\/blog\\\/2026\\\/10\\\/14\\\/hr-newsletter-complying-with-flsa-tip-regulations\\\/#article\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/www.employco.com\\\/blog\\\/2026\\\/10\\\/14\\\/hr-newsletter-complying-with-flsa-tip-regulations\\\/\"},\"author\":{\"name\":\"Employco USA\",\"@id\":\"https:\\\/\\\/www.employco.com\\\/blog\\\/#\\\/schema\\\/person\\\/9c5a99be12eccf56ad10d0301c213414\"},\"headline\":\"HR Newsletter: Complying With FLSA Tip Regulations\",\"datePublished\":\"2026-10-14T21:27:12+00:00\",\"dateModified\":\"2026-10-14T21:27:15+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\\\/\\\/www.employco.com\\\/blog\\\/2026\\\/10\\\/14\\\/hr-newsletter-complying-with-flsa-tip-regulations\\\/\"},\"wordCount\":162,\"image\":{\"@id\":\"https:\\\/\\\/www.employco.com\\\/blog\\\/2026\\\/10\\\/14\\\/hr-newsletter-complying-with-flsa-tip-regulations\\\/#primaryimage\"},\"thumbnailUrl\":\"https:\\\/\\\/www.employco.com\\\/images\\\/newsletter\\\/HR\\\/Blog\\\/October2026_Tip-Regulations.jpg\",\"articleSection\":[\"HR Newsletter\"],\"inLanguage\":\"en-US\"},{\"@type\":\"WebPage\",\"@id\":\"https:\\\/\\\/www.employco.com\\\/blog\\\/2026\\\/10\\\/14\\\/hr-newsletter-complying-with-flsa-tip-regulations\\\/\",\"url\":\"https:\\\/\\\/www.employco.com\\\/blog\\\/2026\\\/10\\\/14\\\/hr-newsletter-complying-with-flsa-tip-regulations\\\/\",\"name\":\"HR Newsletter: Complying With FLSA Tip Regulations - 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The new rule clarifies that employers may only take a tip credit for tipped employees when these employees are performing work that is\u2026","rel":"","context":"In &quot;HR Newsletter&quot;","block_context":{"text":"HR Newsletter","link":"https:\/\/www.employco.com\/blog\/category\/employco-in-the-news\/hr-newsletter\/"},"img":{"alt_text":"DOL (Department of Labor)","src":"https:\/\/i0.wp.com\/www.employco.com\/images\/newsletter\/HR\/Blog\/September20_DOL.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.employco.com\/images\/newsletter\/HR\/Blog\/September20_DOL.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.employco.com\/images\/newsletter\/HR\/Blog\/September20_DOL.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.employco.com\/images\/newsletter\/HR\/Blog\/September20_DOL.jpg?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/www.employco.com\/images\/newsletter\/HR\/Blog\/September20_DOL.jpg?resize=1050%2C600&ssl=1 3x"},"classes":[]},{"id":3248,"url":"https:\/\/www.employco.com\/blog\/2021\/01\/08\/hr-newsletter-dol-amends-employee-tip-regulations\/","url_meta":{"origin":6427,"position":1},"title":"HR Newsletter: DOL Amends Employee Tip Regulations","author":"Employco USA","date":"January 8, 2021","format":false,"excerpt":"On Dec. 22, 2020, the U.S. Department of Labor (DOL) announced a final rule to amend employee tip regulations under the Fair Labor Standards Act (FLSA). The final rule will become effective 60 days after its publication in the Federal Register. Tip Pooling - The FLSA allows employers to collect\u2026","rel":"","context":"In &quot;HR Newsletter&quot;","block_context":{"text":"HR Newsletter","link":"https:\/\/www.employco.com\/blog\/category\/employco-in-the-news\/hr-newsletter\/"},"img":{"alt_text":"Department of Labor","src":"https:\/\/i0.wp.com\/www.employco.com\/images\/newsletter\/HR\/Blog\/September20_DOL.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.employco.com\/images\/newsletter\/HR\/Blog\/September20_DOL.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.employco.com\/images\/newsletter\/HR\/Blog\/September20_DOL.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.employco.com\/images\/newsletter\/HR\/Blog\/September20_DOL.jpg?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/www.employco.com\/images\/newsletter\/HR\/Blog\/September20_DOL.jpg?resize=1050%2C600&ssl=1 3x"},"classes":[]},{"id":3625,"url":"https:\/\/www.employco.com\/blog\/2021\/10\/12\/hr-newsletter-dol-announces-final-rule-on-tip-regulations\/","url_meta":{"origin":6427,"position":2},"title":"HR Newsletter: DOL Announces Final Rule on Tip Regulations","author":"Employco USA","date":"October 12, 2021","format":false,"excerpt":"On Sept. 23, the U.S. Department of Labor announced a final rule that will amend Fair Labor Standards Act (FLSA) regulations for tipped employees. The final rule was publicized in the Federal Register on Sept. 24, 2021, and is expected to become effective on Nov. 23, 2021. Tips for Managers\u2026","rel":"","context":"In &quot;HR Newsletter&quot;","block_context":{"text":"HR Newsletter","link":"https:\/\/www.employco.com\/blog\/category\/employco-in-the-news\/hr-newsletter\/"},"img":{"alt_text":"DOL (Department of Labor)","src":"https:\/\/i0.wp.com\/www.employco.com\/images\/newsletter\/HR\/Blog\/September20_DOL.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.employco.com\/images\/newsletter\/HR\/Blog\/September20_DOL.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.employco.com\/images\/newsletter\/HR\/Blog\/September20_DOL.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.employco.com\/images\/newsletter\/HR\/Blog\/September20_DOL.jpg?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/www.employco.com\/images\/newsletter\/HR\/Blog\/September20_DOL.jpg?resize=1050%2C600&ssl=1 3x"},"classes":[]},{"id":3360,"url":"https:\/\/www.employco.com\/blog\/2021\/04\/14\/hr-newsletter-tip-rule-upcoming-changes\/","url_meta":{"origin":6427,"position":3},"title":"HR Newsletter: Tip Rule \u2013 Upcoming Changes","author":"Employco USA","date":"April 14, 2021","format":false,"excerpt":"On December 22, 2020, the U.S. Department of Labor (DOL) published a final rule to amend employee tip regulations under the Fair Labor Standards Act (FLSA). The final rule was scheduled to take effect on March 1, 2021; however, on February 26, 2021, the DOL delayed the rule\u2019s effective date\u2026","rel":"","context":"In &quot;HR Newsletter&quot;","block_context":{"text":"HR Newsletter","link":"https:\/\/www.employco.com\/blog\/category\/employco-in-the-news\/hr-newsletter\/"},"img":{"alt_text":"Department of Labor","src":"https:\/\/i0.wp.com\/www.employco.com\/images\/newsletter\/HR\/Blog\/September20_DOL.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.employco.com\/images\/newsletter\/HR\/Blog\/September20_DOL.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.employco.com\/images\/newsletter\/HR\/Blog\/September20_DOL.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.employco.com\/images\/newsletter\/HR\/Blog\/September20_DOL.jpg?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/www.employco.com\/images\/newsletter\/HR\/Blog\/September20_DOL.jpg?resize=1050%2C600&ssl=1 3x"},"classes":[]},{"id":5345,"url":"https:\/\/www.employco.com\/blog\/2024\/04\/18\/hr-newsletter-best-practices-for-reclassifying-employees-as-non-exempt\/","url_meta":{"origin":6427,"position":4},"title":"HR Newsletter: Best Practices for Reclassifying Employees as Non-exempt","author":"Employco USA","date":"April 18, 2024","format":false,"excerpt":"The Fair Labor Standards Act (FLSA) provides minimum wage and overtime pay protections to most employees. Employees generally must be classified as \u201cnon-exempt\u201d and, therefore, be eligible for such minimum wage and overtime protections unless they meet the criteria to be classified as \u201cexempt\u201d from minimum wage and overtime requirements.\u2026","rel":"","context":"In &quot;HR Newsletter&quot;","block_context":{"text":"HR Newsletter","link":"https:\/\/www.employco.com\/blog\/category\/employco-in-the-news\/hr-newsletter\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":3271,"url":"https:\/\/www.employco.com\/blog\/2021\/02\/11\/hr-newsletter-expected-employment-changes-under-president-biden\/","url_meta":{"origin":6427,"position":5},"title":"HR Newsletter: Expected Employment Changes Under President Biden","author":"Employco USA","date":"February 11, 2021","format":false,"excerpt":"Each presidential transition brings changes to the human resources landscape and we expect that to continue under President Joe Biden. With any legislative change\u2014regardless of intent or outcome\u2014employers must adapt quickly or risk penalties. This can mean redrafting internal policies, recategorizing workers, changing organizational priorities, rewriting employee handbooks and any\u2026","rel":"","context":"In &quot;HR Newsletter&quot;","block_context":{"text":"HR Newsletter","link":"https:\/\/www.employco.com\/blog\/category\/employco-in-the-news\/hr-newsletter\/"},"img":{"alt_text":"Employment Changes","src":"https:\/\/i0.wp.com\/www.employco.com\/images\/newsletter\/HR\/Blog\/February2021_EmploymentChangesBiden.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.employco.com\/images\/newsletter\/HR\/Blog\/February2021_EmploymentChangesBiden.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.employco.com\/images\/newsletter\/HR\/Blog\/February2021_EmploymentChangesBiden.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.employco.com\/images\/newsletter\/HR\/Blog\/February2021_EmploymentChangesBiden.jpg?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/www.employco.com\/images\/newsletter\/HR\/Blog\/February2021_EmploymentChangesBiden.jpg?resize=1050%2C600&ssl=1 3x"},"classes":[]}],"jetpack_featured_media_url":"","_links":{"self":[{"href":"https:\/\/www.employco.com\/blog\/wp-json\/wp\/v2\/posts\/6427","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.employco.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.employco.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.employco.com\/blog\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.employco.com\/blog\/wp-json\/wp\/v2\/comments?post=6427"}],"version-history":[{"count":1,"href":"https:\/\/www.employco.com\/blog\/wp-json\/wp\/v2\/posts\/6427\/revisions"}],"predecessor-version":[{"id":6428,"href":"https:\/\/www.employco.com\/blog\/wp-json\/wp\/v2\/posts\/6427\/revisions\/6428"}],"wp:attachment":[{"href":"https:\/\/www.employco.com\/blog\/wp-json\/wp\/v2\/media?parent=6427"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.employco.com\/blog\/wp-json\/wp\/v2\/categories?post=6427"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.employco.com\/blog\/wp-json\/wp\/v2\/tags?post=6427"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}