News & Analysis as of

Food Service Workers Fair Labor Standards Act (FLSA) Employment Litigation

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

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

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

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

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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

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

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

Tenth Circuit Rules Employer That Pays More Than Minimum Wage Does Not Have to Share Customers' Tips With Employees

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On June 30, 2017, the U.S. Court of Appeals for the Tenth Circuit ruled in Marlow v. The New Food Guy, Inc. d/b/a Relish Catering (Relish) that neither the Fair Labor Standards Act (FLSA) nor a Department of Labor (DOL)...more

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