News & Analysis as of

Food Service Workers 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

Fisher Phillips

California’s Fast Food Council Plans for Next Wage Hike Despite Pushback From Franchise Owners

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Members of California’s Fast Food Council were not deterred by a chorus of franchise owners who gathered at a Jan. 23 meeting to object to plans for another minimum wage increase in the fast-food industry. Here’s the latest...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

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

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

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

Fisher Phillips

California Restaurant Groups Ask Fast Food Council to Slow Down Plans to Hike Minimum Wage Beyond $20 Per Hour

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California’s newly established Fast Food Council was inundated at its September 12 meeting by competing testimony – organized labor on one side and restaurant groups on the other – about potential plans to raise the industry...more

Littler

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

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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

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

Whiteford

Employment Law Update: The Tip Credit is Back

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Hospitality employers take note – the Department of Labor’s (DOL) tip rule has been struck down. The tip credit is a provision of the Fair Labor Standards Act (“FLSA”) that allows employers to pay tipped employees a lower...more

Vedder Price

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

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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

Cole Schotz

Fifth Circuit Strikes Down the DOL Tip Credit Rule

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On August 23, 2024, in Restaurant Law Center v. U.S. Department of Labor, the U.S. Court of Appeals for the Fifth Circuit vacated the U.S. Department of Labor’s (“DOL”) December 2021 final rule that had set strict limits on...more

Benesch

Federal Court Strikes Down Tip Credit Rule Promulgated by the DOL

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On August 23, 2024, the Fifth Circuit Court of Appeals struck down a final rule promulgated by the Department of Labor (“DOL”) restricting when employers could take a tip credit for tipped employees under the Fair Labor...more

Jackson Lewis P.C.

Fifth Circuit Strikes Down DOL Tip Credit Rule: What It Means for Employers

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In a long-awaited decision, the Department of Labor (DOL) regulation setting strict limits on the amount of time that tipped employees can spend performing work that does not directly generate tips has been struck down by the...more

Seyfarth Shaw LLP

Argument Update: Fifth Circuit Panel Seems Poised to Vacate DOL’s 2021 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

Tonkon Torp LLP

The Service Industry Must Revisit Tipping Policies or Prepare to Pay Up

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Recent news of six-digit demands and lawsuits filed by the Department of Labor against multiple Oregon-based institutional restaurant chains has local businesses across the service industry wondering: “Are we tipping our...more

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

2024 State and Major Locality Minimum Wage Updates

Almost half of the states, and several major localities, will increase their minimum wage rates in 2024, with a majority of the changes effective on January 1, 2024. The table below lists state and certain major locality...more

Pullman & Comley - Labor, Employment and...

Connecticut Restaurant Guidebook 2023 Edition Preview: Part One - CT TIP CREDIT 101

This post is part of a series of articles previewing the unique type of information and guidance contained in the Pullman & Comley Hospitality Team’s “Connecticut Restaurant Guidebook 2023 Edition.” Available to members of...more

CDF Labor Law LLP

California Reaches a Fast Food Compromise, Increasing Minimum Wage for Workers

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Last year, California Governor Gavin Newsom signed the FAST Food Accountability and Standards Recovery Act (AB 257), which sought to increase the California minimum wage to $22 per hour, with annual increases thereafter, and...more

Seyfarth Shaw LLP

Governor Orders Extra Cheddar For Fast Food Employees

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Seyfarth Synopsis: California has increased the minimum wage of fast food workers to $20, and authorized the creation of the Fast Food Council comprised of representatives from labor and management to set minimum standards...more

Seyfarth Shaw LLP

Legislative Update: Colorado Proposes New Rules for Tipped Workers, and More State and Local Efforts to Eliminate the Tip Credit

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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

CDF Labor Law LLP

More Minimum Wage Increases Hitting California Employers Soon

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Effective January 1, 2024, the general statewide minimum wage will increase by .50 cents, bringing the hourly rate from $15.50 to $16.00.   Please also keep in mind that many (around 35-40) cities and counties in...more

Sheppard Mullin Richter & Hampton LLP

Washington D.C. Attorney General Offers Guidance for Restaurant Employers Amidst Spike in Service Fees

In 2022, Washington D.C. voters passed Initiative 82, or the “District of Columbia Tip Credit Elimination Act,” which later became law in February 2023. As we previously reported, the law will gradually phase out the “tip...more

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