News & Analysis as of

Hospitality Industry Minimum Wage Employer Liability Issues

Conn Maciel Carey LLP

[Event] In-Person Breakfast Briefing: Wage & Hour Update - September 17th, Washington, DC

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Navigating wage and hour compliance is more complex than ever. This complimentary, interactive in-person briefing goes beyond the basics to explore the real-world challenges employers are facing today. Led by our dedicated...more

Seyfarth Shaw LLP

Olympic Sized Wages: LA City Council Takes Next Steps on “Olympic Wage” Ordinance

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The 2028 Los Angeles Olympics is already bringing change to the city. On December 11, 2024, the Los Angeles City Council voted 12-3 to approve a draft ordinance to amend the Living Wage Ordinance and the Hotel Worker Minimum...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

Fisher Phillips

Top 10 Workplace Law Developments To Expect Under President Trump

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Now that we know Donald Trump will return to the White House as President, it’s time for employers to take a look at what they might expect during his second term in office. We have gathered insights from some of our firm’s...more

Littler

Littler Lightbulb: August Appellate Roundup

Littler on

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

Fisher Phillips

Workplace Law Update: 10 Essential Items on Your September To-Do List

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It’s hard to keep up with all the recent changes to labor and employment law, especially since the law always seems to evolve at a rapid pace. In order to ensure you stay on top of the latest changes and have an action plan...more

Vedder Price

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

Vedder Price on

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

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

Preventing Missteps in Hiring and Managing Seasonal Workers

Hiring seasonal workers can raise some important legal questions over how to properly handle overtime pay, work schedules, employee training, and other matters. These concerns particularly affect businesses in the hospitality...more

Fisher Phillips

Can Restaurant Hosts Share in the Tip Pool? Top 5 Questions for Employers that Take a Tip Credit

Fisher Phillips on

Many restaurants utilize tip pools to encourage teamwork, consistency, and customer-focused service – but you may be confused about who can and can’t participate in the pool. You feel confident that your servers and...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

Fox Rothschild LLP

D.C. Hospitality Employers Must Disclose Mandatory Service Fees

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The Office of the Attorney General for Washington D.C. (OAG) recently reminded hospitality employers in the city who use mandatory service charges and other fees that they must properly disclose such charges to guests under...more

Seyfarth Shaw LLP

Tips from Seyfarth: Connecticut General Assembly Fails to Pass Tip Credit Elimination Bill

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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

Littler

Dear Littler: How Do Restaurants Without Table Service Handle Tips?

Littler on

Dear Littler, We operate sandwich shops in a couple of states. Although we have tables, we don’t have table service, and customers pick up food at the counter themselves to either take out or seat themselves at our...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

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

Parker Poe Adams & Bernstein LLP

Federal Court Rejects Challenge to DOL Tip Credit Rule

In recent years, persons or groups unhappy about a new federal law or regulation have chosen to file suit in a selected federal district court, often in Texas, seeking a nationwide injunction to prohibit the new measure from...more

FordHarrison

Texas Federal Court Stiffs Restaurant Industry on Efforts to Strike Down Department of Labor Regulation on Tip Credit Work

FordHarrison on

Executive Summary: On July 6, 2023, a federal district court upheld the U.S. Department of Labor’s (DOL’s) regulations on the type and amount of work that tipped employees may perform while being paid the reduced minimum wage...more

Fisher Phillips

Restaurant Owner Learns Dangers of Comingling Employees Between Locations – 4 Lessons for Hospitality Employers

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Federal wage officials recently announced that two Florida restaurants with common ownership failed to properly calculate overtime pay when their employees worked at both locations in the same workweek – sending a stark...more

Littler

D.C. Voters Pass Initiative 82, Phasing Out Tipped Minimum Wage by 2027

Littler on

On November 8, 2022, Washington D.C. voters overwhelmingly passed Initiative 82 or the “District of Columbia Tip Credit Elimination Act.” As a result, the tip credit for D.C. tipped wage workers will be gradually phased out...more

Polsinelli

D.C. Votes to Eliminate the Tip Credit By 2027

Polsinelli on

On November 8, 2022, Washington, D.C. voters approved Initiative 82, which will eliminate the ability of employers in the city to rely on a tip credit to meet the minimum wage requirement for employees who regularly receive...more

Fisher Phillips

California’s Fast-Food Industry Faces Devastating Consequences After Lawmakers Pass Union-Backed Bill

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California lawmakers just passed the first bill in the nation that aims to enact specific workplace rules and standards for fast-food employees – a move that could have devastating consequences for the industry. The Fast Food...more

Fisher Phillips

Don’t Panic Just Yet – The 8 Things Los Angeles Hotels Need to Do to Comply with New Worker Protection Ordinance

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A new law set to take effect on August 6 will require hotels in the City of Los Angeles to implement new protections for certain hotel workers and raises the minimum wage at more hotels in the City of Los Angeles. Similar...more

Fisher Phillips

4 Reminders for Employers After a Texas BBQ Chain’s $900K Tip Pooling Mistake

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Employers in the restaurant and hospitality industries know it’s a common practice to ask workers to share gratuities. Tip pools can promote teamwork and a better customer experience – but they can also land you in hot water...more

Parker Poe Adams & Bernstein LLP

Mandatory Service Charge Not a Tip Under FLSA

One of the hottest areas of controversy in recent years in wage and hour law has involved employees’ right to tips, and employer’s ability to use such tips to count toward minimum wage and overtime payments. As a result of...more

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