HIGHLIGHTS

Employers Blog — Update

The DOL Formally Withdraws the 80/20 Rule for Tipped Employees, But Colorado Continues to Apply that Rule

 “On October 19, 2026, the U.S. Department of Labor (“DOL”) issued a Field Assistance Bulletin (the “Bulletin”) formally withdrawing the guidance behind the “80/20 rule,” which limited how much non-tipped side work a tipped employee could do while the employer paid a reduced cash wage. Colorado employers should not change their practices because the Colorado Division of Labor Standards and Statistics (the “Division”) will keep enforcing the 80/20 rule under state law.”