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Understanding the difference between service charges and tips is critical for New York restaurant owners to remain compliant with state and federal labor laws. Misclassifying these charges can lead to legal disputes,...more
Long days and double shifts are common in the restaurant business. As a New York restaurant owner, it’s crucial to understand the “spread of hours” rule – a unique state requirement that can catch employers off guard. This...more
New York restaurant owners must navigate complex tip pooling and tip credit regulations to ensure compliance with federal and state labor laws. Failure to follow these rules can result in lawsuits, back wages, and penalties....more
As the New Jersey legislature considers eliminating the tip credit—a move that would require all restaurant workers to be paid the full minimum wage regardless of tips—the hospitality and business communities are pushing...more
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
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
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
There’s been a lot of buzz about tipped wages as Election Day approaches – and hospitality employers will want to track key proposals that may have a huge impact on pay practices. Former President Trump and Vice President...more
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
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
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
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
On August 23, 2024, the Fifth Circuit Court of Appeals struck down a 2021 regulation by the U.S. Department of Labor restricting employers’ use of the tip credit for tipped employees under the Fair Labor Standards Act. The...more
On August 22, 2024, the Michigan Department of Labor & Economic Opportunity (LEO) issued a press release on the heels of the Mothering Justice decision, about which we previously wrote, and which will drastically change the...more
Massachusetts voters will decide this November whether employers may continue taking a “tip credit” and paying tipped employees below the state’s standard minimum wage. While restaurant industry representatives fought to keep...more
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
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
After seemingly bouncing back from the challenges posed by the COVID-19 pandemic and related labor, supply chain, and governmental mandate issues, the hospitality industry experienced a year of volatility in 2023, with...more
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 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
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
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
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
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