DOL is getting ready to drop new rules

by Michael Cardman, Brightmine Senior Legal Editor

Changes to federal regulations regarding the minimum wage tip credit, child labor, domestic workers and more are in the works.

The US Department of Labor (DOL) recently submitted several draft regulations to the White House’s Office of Management and Budget (OMB) for a final review.

This means that these rules are now at Step 4 of the 9-step federal regulatory process – and that the DOL is likely to issue proposed rules within the next 100 days.

As of the time of publication, the DOL has not responded to a request for comment about the regulations.

The title of the draft tip credit regulation, Tip Regulations Under the Fair Labor Standards Act (FLSA); Rescission of Dual Jobs, suggests that the DOL may revisit its approach to how the tip credit is applied when an employee works for one employer in both a tipped and a non-tipped occupation, such as an employee employed both as a maintenance person and a waitperson. Last year, a federal appellate court vacated a 2021 DOL regulation known as the “80/20 Plus 30” rule. In response, the DOL repealed the rule and reinstated the regulatory text as it existed before the 2021 rule.

Meanwhile, the title of the draft child labor regulation, Amending Child Labor Hours of Work and Hazardous Occupation Standards under the Fair Labor Standards Act, indicates the DOL’s intent to update its approach to restrictions on the hours during which minors may work and the types of occupations in which they may work.

Finally, a third draft regulation, Application of the Fair Labor Standards Act to Domestic Service, likely will mark the first time since 2015 that the DOL will address the classification of companionship service providers.