News & Analysis as of

Hospitality Industry Appeals

Carlton Fields

Sixth Circuit Finds No E&O Coverage for GL Carrier Under E&O Policy for Underlying Motel Claim

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In Columbia Casualty Co. v. State Auto Mutual Insurance Co., the Sixth Circuit Court of Appeals concluded, under Ohio law, that a demand letter to a general liability insurance carrier’s insured containing allegations of bad...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

Vondran Legal

Boxing Piracy and the "Internet defense" is it viable?

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When your restaurant, bar, nightclub, sports bar, barber shop, gym, country club, cigar bar other similar establishment decides to air the latest and great UFC fight or other sports match in your venue, you need to understand...more

Fisher Phillips

Appeals Court Strikes Down Onerous 80/20/30 Tip Credit Rule: 7 Things Hospitality Employers Should Know About This Win

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A federal appeals court just delivered some good news to hospitality employers by blocking the Department of Labor’s infamous 80/20/30 rule, providing immediate relief to employers around the country by vacating the...more

Conn Kavanaugh

Massachusetts Appeals Court Expands Chapter 93A to Encompass Hotel’s Failure to Warn Guest of Non-Solicitation Policy

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With each decision, the courts give shape to Chapter 93A. This is Attorney Thayer’s second article on such decisions. To read his July 2023 coverage, click here. In a surprising decision that heightens potential exposure...more

Parker Poe Adams & Bernstein LLP

Appeals Court Reopens Door for Injunction to Stop the New Tip Rule

In 2021, the U.S. Department of Labor’s Wage and Hour Division issued new regulations dealing with the Fair Labor Standards Act’s tip credit. The tip credit allows employers to pay a $2.13 hourly minimum wage to tipped...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

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

Massachusetts Supreme Judicial Court Addresses ‘Service Charges’ Under the Massachusetts Tips Act

Massachusetts is seeing an increase in Tips Act claims, and the Massachusetts Supreme Judicial Court (SJC) just reinforced that a lack of clarity in fee- and tip-related documentation may result in employer liability,...more

Jackson Lewis P.C.

California Court Of Appeal Provides Potential Guidance For Right Of Recall Ordinances

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Before 2020, the City of Santa Monica was one of a handful of cities that had a right of recall ordinance. However, since the beginning of the pandemic, many local governments enacted right to recall ordinances to return...more

Fisher Phillips

December 2020: The Top 18 Labor And Employment Law Stories

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It’s hard to keep up with all the recent changes to labor and employment law. While the law always seems to evolve at a rapid pace, there have been an unprecedented number of changes for the past few years—and this past month...more

Parker Poe Adams & Bernstein LLP

Fourth Circuit Reminds Employers the Commissioned Worker Exemption Does Not End Tip Pooling Claims

Hospitality industry employers continue to battle with employees over the proper calculation and distribution of tips under the Fair Labor Standards Act. Last month, the Fourth Circuit Court of Appeals (which includes North...more

Orrick, Herrington & Sutcliffe LLP

ICO Fines: When Is An Appeal Appealing?

The decision to appeal a regulatory finding is never taken lightly. By the time a regulator has completed its investigation and notified a company of its intention to fine, the company will have invested significant time and...more

Payne & Fears

Key California Employment Law Cases: November 2019

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Carroll v. City & Cnty. of S.F., 41 Cal. App. 5th 805, 254 Cal. Rptr. 3d 519 (2019) - Summary:  Each alleged reduction of monthly disability retirement benefit payments for discriminatory reasons was continuing violation...more

Fisher Phillips

California Court Rules That Food And Beverage Service Charges May Qualify As Gratuities

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A California appellate court just held that mandatory service charges added by banquet facilities to their contracts may need to be paid to banquet service employees essentially as a form of a gratuity. The October 31, 2019...more

Carlton Fields

A Dart Across the Bow

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The Ninth Circuit Court of Appeals recently underscored that removal practice under the Class Action Fairness Act (CAFA) differs in some important respects from traditional removal practice in non-CAFA cases. It did so...more

Genova Burns LLC

“Borgata Babes” May Challenge the Hotel’s Personal Appearance Standards in Court

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The remaining plaintiffs in the 11-year old, “Borgata Babes” case can proceed to litigate alleged violations of the New Jersey Law Against Discrimination (LAD). On May 20, 2019, the Superior Court of New Jersey, Appellate...more

Parker Poe Adams & Bernstein LLP

Full Ninth Circuit Defers to DOL's Interpretation of Payment for Non-Tipped Work

Employers in the hospitality industry continue to face class and collective action lawsuits based on alleged violations of minimum wage requirements for tipped workers. Most of this litigation involves interpretation of the...more

FordHarrison

Ninth Circuit Perpetuates Uncertainty in 80/20 Rule for Employers of Tipped Workers

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On September 18, 2018, a year after a three-judge panel of the United States Court of Appeals for the Ninth Circuit affirmed the dismissal of Marsh v. J. Alexander’s LLC, 869 F.3d 1108, a larger en banc panel of the court has...more

Fisher Phillips

Web Exclusive - June 2018: The Top 18 Labor And Employment Law Stories

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It’s hard to keep up with all the recent changes to labor and employment law. While the law always seems to evolve at a rapid pace, there have been an unprecedented number of changes for the past few years—and this past month...more

Fisher Phillips

Court Permits Website Accessibility Lawsuit Against Hooters To Proceed

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A federal appeals court just breathed new life into a disability access lawsuit filed against restaurant chain Hooters, permitting a blind plaintiff who claims he could not access the company’s business website to proceed...more

Fisher Phillips

Serenity Now – Looking Back On USDOL's Actions Mid-Year, And A Sneak Peek At What Might Be Coming

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We are almost half way through 2018, and this year has been filled with fast and furious changes at USDOL. Proposed tip credit changes (Check, including a reaction from Congress and more tip credit changes on the horizon)....more

Fisher Phillips

Web Exclusive: March 2018: The Top 13 Labor And Employment Law Stories

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It’s hard to keep up with all the recent changes to labor and employment law. While the law always seems to evolve at a rapid pace, there were an unprecedented number of changes all through 2017. And if the first three months...more

Foster Garvey PC

The Tip Pooling Saga: What Employers Need to Know with Tip Pooling Being Legal Once Again

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Just when it seemed that service charges were all the rage, tip pooling has reemerged to grab the headlines. Making the rounds from courts to agencies, and now Congress, the issue appears to have been settled by Congress that...more

Fisher Phillips

Here's a Tip: Tread Carefully

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As we previously wrote, Congress has now amended Section 3(m) of the federal Fair Labor Standards Act (FLSA) to prohibit an employer from "keep[ing] tips received by its employees for any purpose, including allowing managers...more

Parker Poe Adams & Bernstein LLP

Ninth Circuit Agrees to Reconsider Tip Credit Case

For employers in the hospitality industry, tipping policies continue to pose significant litigation risks. A number of restaurant groups have faced recent class and collective action claims based on allegations that the...more

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