News & Analysis as of

Employer Liability Issues Tipped Employees

Seyfarth Shaw LLP

1 Big Bill + 2 New Deductions = Multiple New Challenges

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The freshly enacted “One Big Beautiful Bill” introduces two above-the-line tax deductions for tips and overtime wages. While these deductions offer potential savings for eligible workers, they come with new compliance...more

Littler

Colorado Enacts Increased Wage Act Penalties and Enforcement, Allows Local Governments to Increase Tip Credit

Littler on

Colorado has enacted House Bill 25-1001, which significantly amends the state’s wage and hour laws by enhancing enforcement mechanisms, expanding employer liability, and strengthening employee protections. The law will take...more

Epstein Becker & Green

Time is Money: A Quick Wage-Hour Tip on … DOL Confirms Managers Are Blocked from Tip Pool Even When Working in Non-Supervisory...

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Section 3(m)(2)(B) of the FLSA prohibits employers, including managers or supervisors, from keeping any portion of an employee’s tips. Accordingly, the law has been clear that a manager or supervisor cannot participate in a...more

Jaburg Wilk

Arizona Minimum Wage Increases on January 1, 2025

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The Arizona minimum wage increased from $14.35 per hour to $14.70 per hour. The latest increase will take effect on January 1, 2025, and will remain in effect until December 31, 2025. This means that Arizona employers will...more

Vedder Price

DOL Reaffirms That Managers And Supervisors May Not Participate In Tip Pools

Vedder Price on

On December 18, 2024, the DOL issued opinion letter FLSA2024-02, reaffirming its position that managers and supervisors are prohibited from participating in tip pools under any circumstances....more

Perkins Coie

Colorado Announces Minimum Wage Increases for 2025

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Starting in 2025, Colorado’s state minimum wage, which is adjusted for inflation, will increase from $14.42 to $14.81 per hour. For tipped workers, the minimum wage will continue to be $3.02 less than the standard minimum...more

Hinshaw & Culbertson - Employment Law...

The 12 Days of California Labor and Employment Series – Day 10 "Minimum Wage Updates"

In the spirit of the season, we are using our annual "12 Days of California Labor and Employment" blog series to address new California laws and their impact on employers. On the tenth day of the holidays, my labor and...more

Littler

Littler’s Semi-Annual Rates Update for Minimum Wage, Tips, and Exempt Pay Increases on January 1, 2025 (and Other Developments)

Littler on

While Americans across the country headed to the polls to decide who would govern their country, state, county, or city, most decisions were already made concerning what minimum pay rate would govern the employment of...more

Bradley Arant Boult Cummings LLP

Pass the FLSA Sauce! 5 Employment Law Happenings That May Make You Thankful

With Thanksgiving right around the corner, now is the perfect time to reflect on things for which we have to be thankful. In the ever-evolving world of labor and employment law, there have been several significant...more

Perkins Coie

Massachusetts Voters Retain Subminimum Wage for Tipped Employees

Perkins Coie on

On election day Massachusetts voters were given the opportunity to vote on the Fair Wage for Tipped Workers Act, a ballot measure, referred to as Question 5, that would have gradually increased pay for tipped workers until it...more

Akerman LLP - HR Defense

A Tip for Employers With Tipped Employees — Stay on Top of the Ever-Changing Guidance on the 80/20 Rule!

Employers with tipped employees are constantly trying to keep up with the ever-changing and evolving tip credit rules promulgated by the United States Department of Labor (DOL) — specifically, what is known as the 80/20 rule....more

Seyfarth Shaw LLP

Tips from Seyfarth: Opinion Update – Fifth Circuit Clarifies Scope of its Decision Vacating 80/20 Rule

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Tips from Seyfarth is a blog series for employers, and their in-house lawyers and HR, payroll, and compensation professionals, in the food, beverage, and hospitality sector. We curate wage and hour compliance “tips” to keep...more

Fisher Phillips

Top 10 Workplace Law Developments To Expect Under President Trump

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Now that we know Donald Trump will return to the White House as President, it’s time for employers to take a look at what they might expect during his second term in office. We have gathered insights from some of our firm’s...more

Falcon Rappaport & Berkman LLP

No Tax on Tips: Pragmatic Tax Proposal or Populist Tax Policy Nightmare?

Recently, both major-party presidential candidates have come out in favor of a “no tax on tips” proposals, though neither candidate has indicated how to implement one. There have been proposals from other legislators, though...more

Troutman Pepper Locke

The Fifth Circuit Strikes Down DOL’s Rule for Tipped Employees

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In a highly anticipated decision published on August 23, 2024, the United States Court of Appeals for the Fifth Circuit struck down the Department of Labor’s (DOL) Final Rule that limited the circumstances under which an...more

Steptoe & Johnson PLLC

Federal Appeals Court Deals Mortal Blow to Tipped Employee Regulations

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Details Hospitality employers with tipped employees received welcome news late last month when a federal appeals court overturned the Department of Labor’s (DOL) so-called 80/20/30 Rule, the highlight of a new set of...more

Littler

Michigan Supreme Court Clarifies Minimum Wage & Tipped Rates and Schedule for 2025 and Future Years

Littler on

On September 18, 2024, at the request of the State of Michigan and its attorney general, the Michigan Supreme Court clarified issues relating to future minimum wage rates and minimum cash wage rates for tip-credit employees...more

Robinson Bradshaw

Fifth Circuit Strikes Down DOL Tip Rule

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On Aug. 23, the Fifth Circuit Court of Appeals invalidated the DOL’s 2021 rule on tip credits under the Fair Labor Standards Act. While the tip credit lives on, the Fifth Circuit’s ruling simplifies compliance for many...more

Morgan, Brown & Joy, LLP

Fifth Circuit Strikes Down Department of Labor’s “80/20” Tip Credit Rule

On August 23, 2024, the Fifth Circuit, in Restaurant Law Center v. U.S. Department of Labor, No. 23-50562 (Aug. 23, 2024), struck down the Department of Labor’s (“DOL”) 2021 rule restricting an employer’s ability to claim tip...more

Cranfill Sumner LLP

Making it “Rein”: Fifth Circuit Looks to Roll Back Department of Labor Rulemaking Authority

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A trio of cases before the United States Court of Appeals for the Fifth Circuit have challenged the core of US Department of Labor rulemaking. With varying levels of success. Restaurant Law Center v. DOL pertains to the DOL’s...more

Littler

Littler Lightbulb: August Appellate Roundup

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This Littler Lightbulb highlights some of the more significant employment law developments in federal courts of appeal in the last month. Fifth Circuit Vacates DOL Tip Credit Rule...more

Fisher Phillips

Workplace Law Update: 10 Essential Items on Your September To-Do List

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It’s hard to keep up with all the recent changes to labor and employment law, especially since the law always seems to evolve at a rapid pace. In order to ensure you stay on top of the latest changes and have an action plan...more

Vedder Price

Fifth Circuit Strikes Down U.S. Department of Labor Tip Credit Rule

Vedder Price on

In a highly anticipated opinion, on August 23, 2024, the Fifth Circuit in Restaurant Law Center v. U.S. Department of Labor (Case No. 23-50562) struck down a Final Rule promulgated by the U.S. Department of Labor (DOL) that...more

Bradley Arant Boult Cummings LLP

Tipped Out? 5th Circuit Negates DOL Tip Credit Rule

How the FLSA “tip credit” is applied has been pushed and pulled numerous times over the last two decades. In the latest volley, the Fifth Circuit entered an order on August 23, 2024, vacating the Department of Labor’s 2021...more

Seyfarth Shaw LLP

Tips from Seyfarth: In a Major Win for Restaurants, Fifth Circuit Vacates DOL’s 80/20 Rule

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Tips from Seyfarth is a blog series for employers, and their in-house lawyers and HR, payroll, and compensation professionals, in the food, beverage, and hospitality sector. We curate wage and hour compliance “tips” to keep...more

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