Minimum Wage, Department of Labor (DOL), Hospitality Industry

Where Do We Stand? An Action Plan for Employers on Tip Credit Compliance and the 80/20 Rule

Fisher Phillips on 5/6/2025

Many employers in hospitality and other service industries take the tip credit toward their minimum wage obligation under federal wage and hour law – but complying with evolving rules has been challenging in recent years....more

Labor Department Withdraws Onerous 80/20/30 Tip Credit Rule: 5 Practical Tips for Employers

Fisher Phillips on 12/20/2024

If you take the tip credit for employees that receive gratuities, you’ll want to review your policies and practices in light of Monday’s game-changing announcement from the U.S. Department of Labor (DOL). The Department...more

DOL Returns to Pre-2021 Dual Jobs Regulation for Tipped Employees

Jackson Lewis P.C. on 12/19/2024

The U.S. Department of Labor (DOL) published a final rule on Dec. 17, 2024, restoring the pre-2021 language of the “dual jobs” regulation for tipped employees under the Fair Labor Standards Act (FLSA). This is a technical...more

A Tip for Employers With Tipped Employees — Stay on Top of the Ever-Changing Guidance on the 80/20 Rule!

Akerman LLP - HR Defense on 11/8/2024

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

Littler Lightbulb: August Appellate Roundup

Littler on 9/6/2024

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

How Will the Election and Recent Legislative Trends Impact Tipped Wages? 4 Developments for Hospitality Employers to Watch

Fisher Phillips on 9/3/2024

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

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

Fisher Phillips on 9/3/2024

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

Employment Law Update: The Tip Credit is Back

Whiteford on 8/30/2024

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

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

Vedder Price on 8/30/2024

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

Federal Court Strikes Down Tip Credit Rule Promulgated by the DOL

Benesch on 8/29/2024

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

Fifth Circuit Strikes Down DOL Tip Credit Rule: What It Means for Employers

Jackson Lewis P.C. on 8/27/2024

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

5th Circuit Strikes Down 2021 Tip Rule

Franczek P.C. on 8/26/2024

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

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

Fisher Phillips on 8/26/2024

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

Serving Up Compliance: How the Hospitality Industry Can Remain Compliant with Changing Laws and Regulations

Ward and Smith, P.A. on 7/23/2024

The hospitality industry is a fast-paced sector that juggles a myriad of issues from high worker turnover to shortages of workers. In addition to these inherent challenges, the industry must also comply with a multitude of...more

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

Fisher Phillips on 5/17/2024

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

Argument Update: Fifth Circuit Panel Seems Poised to Vacate DOL’s 2021 80/20 Rule

Seyfarth Shaw LLP on 5/1/2024

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

Are You Properly Paying Your Bell Staff? 5 Top Questions for Hotels that Take a Tip Credit

Fisher Phillips on 9/13/2023

Hotel staff often include a mix of tipped and non-tipped jobs, but following wage and hour rules isn’t always easy, particularly if employees perform a variety of tasks. Some workers — such as servers and bartenders — may...more

Tips from Seyfarth: Challenge to DOL’s 80/20 Rule Likely to Head Back to the Fifth Circuit

Seyfarth Shaw LLP on 8/1/2023

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

US DOL Wins Latest Battle in War with Restaurant Associations over the Tipped Employee “80/20” Rule

Adams & Reese on 7/26/2023

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

Federal Court Rejects Challenge to DOL Tip Credit Rule

Parker Poe Adams & Bernstein LLP on 7/21/2023

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

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

FordHarrison on 7/18/2023

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

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