News & Analysis as of

Fair Labor Standards Act (FLSA) Employment Litigation 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

Vedder Price

DOL Returns to Prior Dual Jobs Regulation for Tipped Employees

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In August 2024, we reported on the highly anticipated opinion in Restaurant Law Center v. U.S. Department of Labor, 115 F.4th 396 (5th Cir. 2024), in which the Fifth Circuit vacated the 2021 Dual Jobs Final Rule as arbitrary,...more

Seyfarth Shaw LLP

Frying the Certification: Fourth Circuit Turns Up the Heat, Reversing Class Certification Decision for Bojangles Shift Managers In...

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Class Certification Recipe Needs More Flavor: The Fourth Circuit tossed out a class certification order for Bojangles’ shift managers, citing a high level of generality in identifying common policies and overly broad class...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

Parker Poe Adams & Bernstein LLP

Eleventh Circuit Confirms That Service Charges Are Not FLSA Tips

The tip wars between hospitality employers and employees continue unabated. Numerous lawsuits contend that restaurants and other employers wrongfully retain or require sharing of customer gratuities, as well as violate Fair...more

Fisher Phillips

Workplace Law Forecast 2024 - Your workplace law recap for 2023 and predictions for 2024 to help you prepare for the coming year.

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When I reflect on the relationship that our firm has with our clients, I’m most proud of the fact that you can always count on us. That often means defending complex litigation, steering you through regulatory threats,...more

Seyfarth Shaw LLP

Tips from Seyfarth: Challenge to DOL’s 80/20 Rule Likely to Head Back to the Fifth Circuit

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Seyfarth Synopsis: After a remand from the Fifth Circuit, a trial court has upheld the validity of the Department of Labor’s 2021 regulation codifying the 80/20 rule, raising the possibility of another appeal....more

Adams & Reese

US DOL Wins Latest Battle in War with Restaurant Associations over the Tipped Employee “80/20” Rule

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In Restaurant Law Center et al. vs. US Department of Labor, Case 1:21-cv-01106-RP (W.D. Tex. July 6, 2023), the Texas Federal District Court granted summary judgment in favor of the DOL, upholding the DOL’s December 2021...more

Littler

Legal Challenge to FLSA 80/20 Rule Returns to Texas Court

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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

Littler

Salt Bae’s Sprinkle of First Impression: Eleventh Circuit Holds Mandatory Service Charges Are Not “Tips” and May Be Used to...

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On March 18, 2022, the U.S. Court of Appeals for the Eleventh Circuit upheld a district court’s decision that an 18% service fee charged at the upscale Miami steakhouse of celebrity chef Nusret Gökçe was not a “tip” and was...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

PilieroMazza PLLC

FLSA and Wage and Hour Issues for Restaurants

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The Fair Labor Standards Act (FLSA) and state or local wage-and-hour statutes establish federal and state minimum wage, overtime pay, and recordkeeping requirements. All restaurants are subject to either the FLSA or state or...more

Burr & Forman

11th Circuit Court of Appeals Vacates Employer’s Tip Credit Summary Judgment Victory in Rafferty v. Denny’s

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The 11th Circuit clarified that employers, not employees, bear the burden of proving compliance with the 80-20 rule for employees subject to the tip credit under the FLSA....more

PilieroMazza PLLC

[Webinar] FLSA and Wage-and-Hour Issues for Restaurants - December 7th, 2:00 pm - 3:00 pm ET

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The Fair Labor Standards Act (FLSA) and state or local wage-and-hour statutes establish federal and state minimum wage, overtime pay, and recordkeeping requirements. All restaurants are subject to either the FLSA or state or...more

PilieroMazza PLLC

Restaurants are Prime Targets for FLSA Lawsuits: 6 Tips for Employers Relying on the Tip Credit

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The COVID-19 pandemic has been particularly difficult for the food and beverage industry.  With stay-at-home orders, operational capacity restrictions, and indoor dining limitations imposed on restaurants and bars across most...more

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

Party of One: Collective Action Against Outback Steakhouse Denied due to Lack of Personal Jurisdiction

The U.S. District Court for the District of Massachusetts denied conditional class action certification in a case involving a front of house (FOH) manager suing Outback Steakhouse for unpaid overtime under the Fair Labor...more

Seyfarth Shaw LLP

Introducing The Tip Income Protection Act: Congress’s Misguided Attempt To Turn The FLSA Into A Wage Payment Law

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Seyfarth Synopsis: If it becomes law, a new bill will expand the FLSA’s tip provisions into areas traditionally regulated by state law and create new areas of ambiguity that could be a breeding ground for yet more wage-hour...more

FordHarrison

Ninth Circuit Creates More Uncertainty in 80/20 Rule for Tipped Workers

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On February 16, 2018, the United States Court of Appeals for the Ninth Circuit granted en banc review of Marsh v. J. Alexander’s LLC, 869 F.3d 1108, creating a new layer of uncertainty for hospitality employers....more

Seyfarth Shaw LLP

Extra Credit: Franchise Restaurant Workers Clear Path To Massive Payout On Technicality Under New York Law

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Seyfarth Synopsis: Tipped workers who didn’t receive notice of the tip credit get a win under New York state minimum wage law in a case that echoes technical traps we have seen in FLSA decisions. ...more

Seyfarth Shaw LLP

What Do Sushi and Burritos Have in Common? Second Circuit Ready to Sample Tasty Wage-Hour Procedural Issues

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Seyfarth Synopsis: The Second Circuit will soon decide key issues for FLSA practitioners: whether settlements pursuant to an Offer of Judgment are subject to court review and approval, and whether the standards for final...more

Buchalter

Restoring Common Sense To Determining Who is a Tipped Employee. Case Summary: Marsh v. J Alexander’s

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In Marsh v. J. Alexander’s, The Ninth Circuit issued a fundamentally important opinion supporting the hospitality industry nationwide. Specifically, the Ninth Circuit rejected the U.S. Department of Labor’s (“DOL”) disastrous...more

Bradley Arant Boult Cummings LLP

Relishing the Moment: Tenth Circuit Allows Restaurant to Keep Server Tips and Rejects DOL Regulation

In a victory for restaurant employers, the Tenth Circuit Court of Appeals has ruled that Relish Catering can keep customer tips without violating the Fair Labor Standards Act (FLSA), so long as the employee is paid at an...more

FordHarrison

Avoid singing the blues: how employers can mitigate wage/hour liability

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In the last few years, there have been multiple headlines noting that celebrities are being sued for their (or their businesses’) failure to pay wages in accordance with applicable state and/or federal law. Two such recent...more

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