Connecticut Approves Dual-Duties Rule (1)

Connecticut rules took effect Sept. 24 that require employers that want to take a tip credit to separate and record the time worked by tipped employees who spend at least two hours or more than 20% of their shift on nontipped duties.

The final rule (PR2020-14) was published Sept. 24 to the state’s eRegulations System and effective immediately,a state labor department official confirmed in a Sept. 24 email to Bloomberg Tax.

A tip credit may be allowed if the nonservice duties make up fewer than two hours or up to 20% of a service employee’s shift, but nonservice duties must be separated and recorded by the employer to claim a tip credit as part of the minimum wage for the day, the rule said.

Gratuities may be considered part of the minimum wage if these conditions are met:

• The employee is engaged in employment in which gratuities are customary and recognized as part of compensation.

• The gratuity amount claimed as a minimum-wage credit is recorded on a daily, weekly, or biweekly basis in a wage record.

• Employers claiming a tip credit must provide substantial evidence, such as through an electronic or written statement, that employees received no less than the amount claimed as tip credit.

The duties of service employees relate solely to food and beverages provided to seated patrons and customarily receive gratuities, the rule said, adding that the workers also perform duties incidental to such service.

(Updated to reflect that the rule was published and effective Sept. 24.)