10/13/2026
DOL Opinion Letter FLSA2026-4: What It Means for Section 7(i) Commission Pay
Restaurants and other service establishments that pay servers on commission have long relied on the Section 7(i) overtime exemption. In January 2026, the U.S. Department of Labor’s Wage and Hour Division (WHD) issued Opinion Letter FLSA2026-4 answering two questions that trip up employers in audits. As a former WHD investigator, I have seen both issues surface in the field. Here is what the letter says and what to do about it....
Restaurants and other service establishments that pay servers on commission have long relied on the Section 7(i) overtime exemption. In January 2026, the U.S. Department of Labor’s Wage and Hour Division (WHD) issued Opinion Letter FLSA2026-4 answering two questions that trip up employers in audit...