News & Analysis as of

Food Service Workers Employer Liability Issues Employment Litigation

Carlton Fields

Third Circuit Holds Harassment Exclusion Bars Coverage for Sexual Assault Suit Under Pennsylvania Law

Carlton Fields on

In Rice Enterprises LLC v. RSUI Indemnity Co., the Third Circuit Court of Appeals affirmed the district court’s finding that the insured was not entitled to coverage from its employer’s liability insurer or its umbrella...more

Seyfarth Shaw LLP

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

Seyfarth Shaw LLP on

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

Seyfarth Shaw LLP

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

Seyfarth Shaw LLP on

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

Adams & Reese on

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

Seyfarth Shaw LLP

EEOC’s Crosshairs Locked On Harassment of Teens In Restaurant Industry

Seyfarth Shaw LLP on

Seyfarth Synopsis: Over the past several years, the EEOC has maintained a litigation focus on protecting young workers in low wage jobs from sexual harassment. This has translated to intense scrutiny of teenagers working in...more

Littler

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

Littler on

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

Burr & Forman

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

Burr & Forman on

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

Nilan Johnson Lewis PA

Minnesota Restaurateurs: Fix Your Tip Pools Before You're Hit with a Tip-Pooling Class Action Lawsuit

Restaurants are getting hit with tip-pooling class action lawsuits. Now is the time to audit your practices, or, at the very least, review your tip pooling policies. This is especially important for Minnesota restaurateurs,...more

Littler

Ontario, Canada: Employee’s Excessive Absences to Pursue Education Need Not be Tolerated by Employer

Littler on

In Teamsters Local Union 847 v Maple Leaf Sports and Entertainment, 2019 CanLII 95328 (ON LA), a part-time restaurant employee in Ontario, Canada with two years’ seniority was discharged from her employment because her...more

Epstein Becker & Green

California Court Rules That Mandatory Service Charges May Be Gratuities

Epstein Becker & Green on

Upsetting what many considered settled precedent, a California Court of Appeal has held that a mandatory service charge may qualify as a “gratuity” under California Labor Code Section 351 that must be distributed to the...more

Littler

Massachusetts Supreme Judicial Court Clarifies Class Action Standards for Wage and Hour Cases

Littler on

The Massachusetts Supreme Judicial Court (SJC) recently discussed class certification in state court wage and hour cases in Gammella v. P.F. Chang’s China Bistro....more

Seyfarth Shaw LLP

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

Seyfarth Shaw LLP on

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

FordHarrison on

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

Buchalter

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

Buchalter on

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

U.S. Equal Employment Opportunity Commission...

EEOC Sues Golden Corral for Disability, Sexual Harassment and Discharge

Restaurant Violated Federal Law by Permitting a Hostile Work Environment and Forcing an Autistic Employee to Quit to Escape Harassment, Federal Agency Charges - CHARLOTTE, N.C. - Jax, LLC, which operates a Golden Corral...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

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