The U.S. Department of Labor (DOL) recently withdrew a 2021 tipped-wage rule vacated by a federal appeals court in August 2024, officially reinstating the pre-2021 regulation for tipped employees under the Fair Labor Standards Act (FLSA).

While no one knows what 2025 will bring from an economic point of view and there are several factors that are beyond the control of organizations, they can implement various strategies to man- age a major expense, namely healthcare.

Compensation budgets are holding steady for 2025, even as concerns over talent attraction and retention ease. Employers plan to allocate similar salary increases as in 2024, according to expert projections.