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Fifth Circuit Strikes Down DOL Tip Credit Rule: What It Means for Employers

In a long-awaited decision, the Department of Labor (DOL) regulation setting strict limits on the amount of time that tipped employees can spend performing work that does not directly generate tips has been struck down by the...more

With Increased New York Minimum Wage Come Modified Obligations Under State Wage Orders

The New York State Department of Labor (NYSDOL) has issued proposed regulations to align the state’s industry-specific wage requirements with the upcoming increases in the state minimum wage. In May 2023, Governor Kathy...more

DOL Formally Reinstates ‘20%’ Rule, Adds ‘30-Minute’ Rule Setting Limits on Tip Credit Use

On October 28, 2021, the U.S. Department of Labor (DOL) issued a Final Rule establishing limits on the amount of time tipped employees can spend performing work that is not “tip- producing work” and still being paid at the...more

DOL Proposes FLSA Regulations To Close Door On ‘80/20’ Rule, Implement Tip Pooling Amendments

The Department of Labor (DOL) published a Notice of Proposed Rulemaking (NPRM) on October 8, 2019, to eliminate the “20% Rule,” or “80/20 Rule,” under the Fair Labor Standards Act (FLSA). The 20% Rule, which first appeared...more

The New Year’s Ball May Be Dropping, But New York Wage Rates Are Not: A Preview Of Upcoming Changes

Two years ago, the New York State Department of Labor (NYSDOL) issued final regulations implementing changes resulting from increases to the minimum wage. The state minimum wage for non-exempt employees and the salary level...more

Restaurant Industry Association Files Suit Challenging “80/20” Rule

The Restaurant Law Center, a public policy affiliate of the National Restaurant Association, has filed suit against the Department of Labor and its Wage and Hour Division, seeking to declare unlawful the DOL’s 2012 revision...more

Department Of Labor Issues Initial Guidance On Tip Pooling Amendment

This week the Department of Labor issued new guidance, in a “Field Assistance Bulletin,” on the recent amendment to the FLSA regarding tip sharing. The recent amendment to the FLSA (which was included in the omnibus budget...more

New York Rings In New Year With Wage & Hour Presents: A Preview Of Upcoming Changes

While the federal minimum wage for non-exempt employees has remained unchanged at $7.25 per hour since 2009, and the federal salary level for exempt employees has been stymied in litigation and rulemaking since 2014, New York...more

Governor Cuomo Contemplating Elimination Of Tip Credit

Employers in New York currently are permitted to pay tipped workers a direct cash wage that is below the State minimum wage and take a “credit” for some of the tips received by employees to satisfy the difference between the...more

Labor Department Proposes Reversing Obama-Era ‘Tip-Pooling’ Rule

Employers would be expressly permitted to require servers and other tip-earning employees to share their tips with employees working in the kitchen and other “back of the house” employee, but only when the employer does not...more

DOL’s “80/20” Tip Credit Rule Entitled To No Deference, Ninth Circuit Holds, Creating Circuit Split

Finding it wholly inconsistent with the statute and the regulation it purports to interpret, the Ninth Circuit has held invalid the United States Department of Labor’s “80/20” tip credit rule, or “20% Rule,” which limits the...more

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