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The Treasury Department this week released a “preliminary list” of occupations that may be entitled to claim the “no tax on tips” deduction. As a reminder, the “One Big Beautiful Bill Act” (OBBBA) provides an above-the-line...more
On September 23, 2021, the U.S. Department of Labor (DOL) issued its latest rule related to tip pooling. The rule modifies and clarifies aspects of a rule previously issued by the Trump administration. ...more
On September 24, 2021, the Department of Labor published its most recent rule regarding tip regulations under the Fair Labor Standards Act (“FLSA”). This final rule will go into effect on November 23, 2021....more
Following months of political maneuvering, including a gubernatorial veto, Connecticut has enacted compromise legislation that attempts to clarify how restaurants and other hospitality industry employers must pay workers who...more
On October 8, 2019, the U.S. Department of Labor (DOL) proposed changes to the Fair Labor Standards Act (FLSA) regulations governing the wages of tipped employees, specifically, tip credits and tip pools....more
Calculating overtime pay for tipped employees working in multiple positions at different rates in a single workweek can be confusing. So confusing, in fact, that we discovered that even the District of Columbia’s Department...more
On Monday, October 7, 2019, the Department of Labor (DOL) proposed a new 80/20 rule and tip pooling regulation. First, the proposed regulation, if finalized, will permit employers to take a tip credit regardless of the...more
Rules relating to tip credit and pooling have resulted in significant debate among legislators, regulators, and the courts, leading to confusion, further litigation, and, in many cases, substantial liability or settlements...more
The “20% Rule,” which provided guidance to employers for when they must pay tipped employees minimum, rather than a tipped hourly wage, was recently abandoned by the United States Department of Labor (“DOL”). First published...more
Last year, the Department of Labor’s Wage and Hour Division clarified its position regarding work by tipped employees that allows the employer to claim the employee’s tips in order to constitute the full federal minimum wage....more
With the recent increase of minimum wage rates of pay in Massachusetts, the publishing of guidance from the Attorney General related to minimum wages for tipped employees, and the absence of an exemption from overtime for...more
On February 15, 2019, the U.S. Department of Labor issued Field Assistance Bulletin No. 2019-2, providing additional guidance for Wage and Hour Division staff regarding how to apply tip credit rules for employees who perform...more