News & Analysis as of

Labor Regulations Wage and Hour Restaurant Industry

Davidoff Hutcher & Citron LLP

Understanding Spread of Hours Pay: Compliance Guide for New York Restaurant Owners

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

Vedder Price

DOL Returns to Prior Dual Jobs Regulation for Tipped Employees

Vedder Price on

In August 2024, we reported on the highly anticipated opinion in Restaurant Law Center v. U.S. Department of Labor, 115 F.4th 396 (5th Cir. 2024), in which the Fifth Circuit vacated the 2021 Dual Jobs Final Rule as arbitrary,...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

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

Littler

What You Need to Know About Reporting and Training Requirements in the DC Tipped Wage Worker Fairness Amendment Act

Littler on

In 2018, the District of Columbia enacted the Tipped Wage Workers Fairness Amendment Act (“the Act”). Among other things, the Act imposes obligations on employers that employ tipped employees, including significant training...more

Mitchell, Williams, Selig, Gates & Woodyard,...

Restaurant's Mandatory Service Charge Wasn't a Tip

In the current battle to hire and retain good workers, employers have developed creative ways to balance employees’ increased compensation expectations against the costs of running a business. In addition, restaurants using...more

Littler

Salt Bae’s Sprinkle of First Impression: Eleventh Circuit Holds Mandatory Service Charges Are Not “Tips” and May Be Used to...

Littler on

On March 18, 2022, the U.S. Court of Appeals for the Eleventh Circuit upheld a district court’s decision that an 18% service fee charged at the upscale Miami steakhouse of celebrity chef Nusret Gökçe was not a “tip” and was...more

Akerman LLP - HR Defense

DOL’s Final Rule on Tipped Employees Takes Effect December 28th

Beginning December 28, 2021, employers must pay tipped employees the full minimum wage for periods when non tip-producing work is performed for a substantial amount of time, in light of a new Department of Labor (DOL) Final...more

Burr & Forman

Department of Labor Releases Final Rule for Tipped Employees

Burr & Forman on

Tip Credits under the Fair Labor Standards Act - The Fair Labor Standards Act (“FLSA”) generally permits employers to pay tipped employees less than the minimum hourly wage, provided that the tips the employee receives are...more

FordHarrison

Restaurant Industry Alert: DOL Publishes Final Rule for Tipped Employees

FordHarrison on

On October 29, 2021, the U.S. Department of Labor (DOL) published its Final Rule related to tipped employees. It is effective December 28, 2021. DOL had issued a Notice of Proposed Rulemaking (NPRM) on June 21, 2021,...more

Foley Hoag LLP

Department of Labor Issues New Rule Limiting Use of Tip Credits

Foley Hoag LLP on

On October 28, 2021, the United States Department of Labor (DOL) announced a new rule affecting employers with tipped employees. The rule limits the circumstances under which employers may take a “tip credit” against an...more

Littler

DOL Publishes Final Rule to Resurrect 80/20 Rule for Tipped Employees

Littler on

On October 28, 2021, the U.S. Department of Labor (DOL) announced publication of a final “dual jobs” rule, which reverses course from a December 2020 final rule and resurrects the so-called “80/20 Rule” that governs how...more

FordHarrison

Reminder: Florida Minimum Wage is Now $10.00 Per Hour

FordHarrison on

Florida voters on November 3, 2020, passed Amendment 2, which will, over a period of years, increase Florida’s minimum wage to $15.00 per hour. The first annual increase was effective September 30, 2021, and increased the...more

FordHarrison

Restaurant Industry Alert: DOL Issues Final Rule Modifying Tip Sharing

FordHarrison on

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

Quarles & Brady LLP

New DOL Tip Credit Rule Clarifies When Managers can Keep Tips and Lays Hefty Fines for FLSA Violations

Quarles & Brady LLP on

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

Littler

Final Rule Affirms U.S. Department of Labor’s Power to Fine Businesses That Engage in Tip Theft

Littler on

The U.S. Department of Labor published a final rule on September 23, 2021 clarifying several amendments to section 3(m) of the Fair Labor Standards Act (FLSA) that concern tip pooling. The final rule reestablishes the DOL’s...more

Franczek P.C.

New DOL Rule Adds Civil Penalties for Taking Employee Tips

Franczek P.C. on

In 2018, Congress added a provision to the Fair Labor Standards Act prohibiting employers from retaining employee tips or allowing managers or supervisors to participate in a tip pooling arrangement. Today, the U.S....more

Burr & Forman

11th Circuit Court of Appeals Vacates Employer’s Tip Credit Summary Judgment Victory in Rafferty v. Denny’s

Burr & Forman on

The 11th Circuit clarified that employers, not employees, bear the burden of proving compliance with the 80-20 rule for employees subject to the tip credit under the FLSA....more

Polsinelli

Labor Department Rescinds Pro-Franchise Joint-Employment Rule

Polsinelli on

On July 29, 2021, the U.S. Department of Labor announced it is rescinding a final rule issued just last year (2020 Final Rule) that sought to clarify the standard for finding two separate entities to be “joint employers”...more

Akerman LLP - HR Defense

Tipped and Non-Tipped Work Back Under the Microscope

The old “80/20 rule” is back again for tipped workers under the latest proposed Final Rule issued by the Department of Labor (DOL) last month. Employers in the service industry, especially those employers who take a tip...more

Littler

DOL Proposal to Resurrect 80/20 Rule for Tipped Employees Fails to Alleviate Longstanding Industry Concerns

Littler on

On June 23, 2021, the U.S. Department of Labor (DOL) published a notice of proposed rulemaking (NPRM), which reverses course from a December 2020 final rule and seeks to resurrect the so-called “80/20 Rule” that governs how...more

FordHarrison

Department of Labor Proposes Limits to Tip Credit for Work "Directly Supporting" Tipped Work

FordHarrison on

Executive Summary: On Monday, June 21, 2021, the U.S. Department of Labor (DOL) issued a Notice of Proposed Rulemaking (NPRM) proposing limits on the tip credit employers can take during workweeks when tipped employees...more

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

Wisconsin Legislature Expressly Authorizes Electronic Tip Declarations

Like the federal Fair Labor Standards Act, Wisconsin law allows hospitality employers to pay certain tipped employees less than the minimum wage with the understanding that the tips they receive will cover the difference....more

Stoel Rives - World of Employment

Minimum Wage Increase and Updated Workplace Posters

It’s that time of year to prepare for minimum wage increases and update workplace posters.  Beginning July 1, minimum wage rates throughout Oregon increase, to $13.25 for Portland Metro, $11.50 for Nonurban Counties, and...more

Akerman LLP - HR Defense

Not So Fast: DOL Pauses Aspects of FLSA Tip Regulations Final Rule

Employers should continue to track and keep records of the percentage of time tipped wage earners spend performing non-tip eligible tasks, as the U.S. Department of Labor (DOL) has pressed pause on several provisions of the...more

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