On August 23, 2024, in Restaurant Law Center v. U.S. Department of Labor, the U.S. Court of Appeals for the Fifth Circuit vacated the U.S. Department of Labor’s so-called “80/20/30 Rule” that governed how tipped employees...more
Dear Littler,
We operate sandwich shops in a couple of states. Although we have tables, we don’t have table service, and customers pick up food at the counter themselves to either take out or seat themselves at our...more
8/16/2023
/ Employer Liability Issues ,
Fair Labor Standards Act (FLSA) ,
Federal Labor Laws ,
Food Service Workers ,
Hospitality Industry ,
Minimum Wage ,
Restaurant Industry ,
Tip Credit ,
Tip-Pooling ,
Tipped Employees ,
Tips ,
Wage and Hour
On April 28, 2023, the U.S. Court of Appeals for the Fifth Circuit ordered a Texas court to further consider a legal challenge to the United States Department of Labor’s 80/20 Rule, which applies to employers that take a tip...more
5/1/2023
/ Department of Labor (DOL) ,
Employer Liability Issues ,
Employment Litigation ,
Fair Labor Standards Act (FLSA) ,
Federal Labor Laws ,
Food Service Workers ,
Minimum Wage ,
Restaurant Industry ,
Tip Credit ,
Tipped Employees ,
Tips ,
Wage and Hour
On June 23, 2021, the U.S. Department of Labor (DOL) published a notice of proposed rulemaking (NPRM), which reverses course from a December 2020 final rule and seeks to resurrect the so-called “80/20 Rule” that governs how...more
6/23/2021
/ Department of Labor (DOL) ,
Employer Liability Issues ,
Fair Labor Standards Act (FLSA) ,
Food Service Workers ,
Hospitality Industry ,
Labor Reform ,
Labor Regulations ,
Minimum Wage ,
NPRM ,
Regulatory Reform ,
Regulatory Standards ,
Restaurant Industry ,
Tip Credit ,
Tipped Employees ,
Tips ,
Wage and Hour
On January 15, 2021, the U.S. Department of Labor issued two opinion letters addressing tip-related issues. The first, FLSA2021-4, addresses whether, and in what circumstances, a restaurant that takes a tip credit for its...more
1/20/2021
/ Department of Labor (DOL) ,
Employer Liability Issues ,
Fair Labor Standards Act (FLSA) ,
Food Service Workers ,
Labor Reform ,
Labor Regulations ,
Minimum Wage ,
Restaurant Industry ,
Tip Credit ,
Tip-Pooling ,
Tipped Employees ,
Tips ,
Wage and Hour
On December 22, 2020, the U.S. Department of Labor (DOL) issued a final rule solidifying tip credit issues under the Fair Labor Standards Act (FLSA). The rule becomes effective 60 days after its publication in the Federal...more
12/24/2020
/ Consolidated Appropriations Act (CAA) ,
Department of Labor (DOL) ,
Employer Liability Issues ,
Fair Labor Standards Act (FLSA) ,
Food Service Workers ,
Labor Reform ,
Labor Regulations ,
Restaurant Industry ,
Tip Credit ,
Tipped Employees ,
Wage and Hour
Over a year after Congress amended the Fair Labor Standards Act (FLSA) to clarify tip ownership questions, the U.S. Department of Labor (DOL) finally published a Notice of Proposed Rulemaking on October 8, 2019, with proposed...more
10/9/2019
/ Comment Period ,
Consolidated Appropriations Act (CAA) ,
Department of Labor (DOL) ,
Employer Liability Issues ,
Fair Labor Standards Act (FLSA) ,
Field Assistance Bulletins ,
Minimum Wage ,
NPRM ,
Proposed Regulation ,
Regulatory Requirements ,
Restaurant Industry ,
Rulemaking Process ,
Tip Credit ,
Tipped Employees ,
Tips ,
Wage and Hour
As part of our practice, we like to keep an eye on significant legislative, regulatory, and judicial developments affecting our clients in the hospitality industry....more
4/3/2019
/ Anti-Harassment Policies ,
Employer Liability Issues ,
Hospitality Industry ,
Hotels ,
Human Trafficking ,
Legislative Agendas ,
Nightclubs ,
Restaurant Industry ,
Sexual Assault ,
Sexual Harassment ,
Slavery ,
Tip Credit ,
Tipped Employees ,
Wage and Hour ,
Work Schedules ,
Workplace Safety
Many years ago, the U.S. Department of Labor (DOL) issued guidance known as the "20% Rule" or "80/20 Rule," which provides that, where tipped employees spend in excess of 20% of their workweek on non-tip-earning tasks, no tip...more