News & Analysis as of

Appeals Wage and Hour Restaurant Industry

Seyfarth Shaw LLP

Where It’s Filed Really Matters: Jurisdictional Limits in Wage and Hour Litigation

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The Ninth Circuit’s decision in Harrington v. Cracker Barrel underscores the growing importance of personal jurisdiction in limiting the scope of FLSA collective actions. The court held that employees with no connection to...more

Parker Poe Adams & Bernstein LLP

Appeals Court Reopens Door for Injunction to Stop the New Tip Rule

In 2021, the U.S. Department of Labor’s Wage and Hour Division issued new regulations dealing with the Fair Labor Standards Act’s tip credit. The tip credit allows employers to pay a $2.13 hourly minimum wage to tipped...more

Mitchell, Williams, Selig, Gates & Woodyard,...

Restaurant's Mandatory Service Charge Wasn't a Tip

In the current battle to hire and retain good workers, employers have developed creative ways to balance employees’ increased compensation expectations against the costs of running a business. In addition, restaurants using...more

Ogletree, Deakins, Nash, Smoak & Stewart,...

Eleventh Circuit: Service Charges Are Wages, Not Tips, Under FLSA

On March 18, 2022, the Eleventh Circuit Court of Appeals ruled in Compere v. Nusret Miami, LLC, a collective action under the Fair Labor Standards Act (FLSA), that Nusr-et Steakhouse properly used automatically charged fees...more

Parker Poe Adams & Bernstein LLP

Fourth Circuit Reminds Employers the Commissioned Worker Exemption Does Not End Tip Pooling Claims

Hospitality industry employers continue to battle with employees over the proper calculation and distribution of tips under the Fair Labor Standards Act. Last month, the Fourth Circuit Court of Appeals (which includes North...more

Sheppard Mullin Richter & Hampton LLP

Managers Beware: Can you be held personally liable for wage and hour violations?

After two years, California courts are finally putting California’s “A Fair Day’s Pay Act” (the “Act”) to the test. While intended to help employees collect judgments against employers that are judgment proof, the Act created...more

FordHarrison

Ninth Circuit Perpetuates Uncertainty in 80/20 Rule for Employers of Tipped Workers

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On September 18, 2018, a year after a three-judge panel of the United States Court of Appeals for the Ninth Circuit affirmed the dismissal of Marsh v. J. Alexander’s LLC, 869 F.3d 1108, a larger en banc panel of the court has...more

Fisher Phillips

Web Exclusive - June 2018: The Top 18 Labor And Employment Law Stories

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It’s hard to keep up with all the recent changes to labor and employment law. While the law always seems to evolve at a rapid pace, there have been an unprecedented number of changes for the past few years—and this past month...more

Holland & Knight LLP

Food and Beverage Law Update: June 2018

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Wage and Hour - Decision Upholds Class Action Waivers in Arbitration Clauses, Resolves Circuit Split - The U.S. Supreme Court issued a long-awaited decision in Epic Systems Corp. v. Lewis on May 21, 2018, holding that...more

Holland & Knight LLP

Religious Institutions Update: June 2018 - Lex Est Sanctio Sancta

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Since 1990, the U.S. Supreme Court has expressly construed a neutral law of general applicability as consistent with the free exercise clause. Deeming Colorado's public accommodations law just such a law, the Colorado Court...more

Fisher Phillips

Will New Misclassification Standard Wipe The Grubhub Trial Victory Off The Books? Plaintiff Takes First Step Under ABC Test

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Late Friday afternoon, the attorneys for the worker who came out on the losing end of the Grubhub misclassification trial asked the appeals court to return the case to the lower court for a new hearing. Their reasoning? Last...more

Bradley Arant Boult Cummings LLP

Update: Soup, Salvation and Overtime – Sixth Circuit Reverses $400,000 FLSA Verdict

Apparently if you are doing the Lord’s work and seek only treasures in heaven, the Fair Labor Standards Act will not guarantee that you receive an earthly reward as well. In a significant ruling that impacts religious...more

Foster Garvey PC

The Tip Pooling Saga: What Employers Need to Know with Tip Pooling Being Legal Once Again

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Just when it seemed that service charges were all the rage, tip pooling has reemerged to grab the headlines. Making the rounds from courts to agencies, and now Congress, the issue appears to have been settled by Congress that...more

Fisher Phillips

Here's a Tip: Tread Carefully

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As we previously wrote, Congress has now amended Section 3(m) of the federal Fair Labor Standards Act (FLSA) to prohibit an employer from "keep[ing] tips received by its employees for any purpose, including allowing managers...more

Parker Poe Adams & Bernstein LLP

Ninth Circuit Agrees to Reconsider Tip Credit Case

For employers in the hospitality industry, tipping policies continue to pose significant litigation risks. A number of restaurant groups have faced recent class and collective action claims based on allegations that the...more

Fisher Phillips

Web Exclusive: January 2018: The Top 18 Labor And Employment Law Stories

Fisher Phillips on

It’s hard to keep up with all the recent changes to labor and employment law. While the law always seems to evolve at a rapid pace, there were an unprecedented number of changes each month in 2017—and if January is any...more

McAfee & Taft

Employers’ right to keep employee tips

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A recent decision by the federal appeals court that covers Oklahoma ruled that employers are not required to share customer tips with employees who are already receiving wages at or above the minimum wage amount....more

Littler

Fifth Circuit Rules on Tip Pooling

Littler on

In Montano v. Montrose Restaurant Associates, Inc., the U.S. Court of Appeals for the Fifth Circuit was presented with what may seem like an easy issue:  does including a “coffeeman” in a tip pool invalidate the tip credit? ...more

Parker Poe Adams & Bernstein LLP

Fourth Circuit Says Tip Pooling Rules Only Apply if Employer Claims Tip Credit

Restaurants and some other hospitality industry employers often take advantage of a sub-minimum wage applicable to employees who receive tips as part of their income. In recent years, a number of these employers have been the...more

Ogletree, Deakins, Nash, Smoak & Stewart,...

Being on Call in California Does Not Impede on Rest Breaks

Augustus v. ABM Security Services, Inc., No. B243788 (filed December 31, 2014, pub. ord. January 29, 2015)): In its recently published decision, the California Court of Appeal held that on-call rest breaks are permissible. In...more

Ogletree, Deakins, Nash, Smoak & Stewart,...

Second Circuit Finds Highly Individualized Damages Inquiry Won’t Spoil Rule 23 Class Wage Claims

Roach v. T.L. Cannon Corp., No. 13-3070-cv (2d Cir. Feb. 10, 2015): The Second Circuit Court of Appeals recently vacated and remanded the U.S. District Court for the Northern District of New York’s decision denying class...more

Ogletree, Deakins, Nash, Smoak & Stewart,...

Who Decides the Issue of Class Arbitration?

Two districts of the California Court of Appeal recently issued significant decisions on arbitration agreements. In a published case, the Fourth Appellate District of the California Court of Appeal held that if the...more

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