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80/20 Rule (Dual Jobs Rule)

Also called: dual jobs rule, 20 percent rule, 80/20

A federal labor rule limiting how much sidework a tipped employee can do at the tipped wage — historically 20% of work time, with the rest paid at full minimum wage.

The 80/20 rule (also called the "dual jobs" rule) governs how much non-tip-producing sidework a tipped employee can perform at the lower tipped wage before the employer loses the tip credit and must pay the full minimum wage.

Historical evolution:

  • Pre-2018: DOL guidance limited sidework to 20% of work time at the tipped wage
  • 2019: Trump-era DOL opinion letter rescinded the 20% cap
  • 2021: Biden-era DOL final rule reinstated the rule with a twist — sidework over 20% OR more than 30 continuous minutes at any single task triggers full minimum wage for the excess
  • 2024: Fifth Circuit struck down the 2021 rule in Restaurant Law Center v. DOL, holding DOL exceeded its authority. The rule is no longer enforceable in the 5th Circuit (TX, LA, MS).
  • 2026 status: federal landscape unsettled. States with their own dual-jobs rules continue to enforce them.

State-level dual-jobs rules (as of 2026): California, Illinois, Massachusetts, Minnesota, New York, Washington all have variations. The specifics vary — some cap sidework at 20%, others at 30%, others at "more than de minimis."

For workers: track your sidework time. Even where federal enforcement is in question, state law may still entitle you to full minimum wage for hours over the threshold.