Minimum Wage, Service Charges, Hospitality Industry

Service Charges vs. Tips: Ensuring Legal Compliance in New York Restaurants

Davidoff Hutcher & Citron LLP on 6/20/2025

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

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

D.C. Hospitality Employers Must Disclose Mandatory Service Fees

Fox Rothschild LLP on 10/13/2023

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

Service Charges Could Be Solution to Tip Credit Challenges: An Employer’s 6-Step Guide

Fisher Phillips on 4/19/2022

Hospitality employers who utilize the “tip credit” under federal wage and hour law may feel as if they operate with a bullseye on their backs given the multi-prong assault underway against the practice. Not only are you in...more

Restaurant’s Mandatory Service Charge Was Not a Tip and May Satisfy FLSA Wage Requirements, Eleventh Circuit Holds

Jackson Lewis P.C. on 3/23/2022

A Miami restaurant’s mandatory 18% service charge did not constitute a “tip” under the Fair Labor Standards Act (FLSA) and therefore was properly applied toward satisfying the FLSA’s employee wage requirements, the U.S. Court...more

Littler Global Guide - Philippines - Q3 2019

Littler on 10/17/2019

Beginning September 3, 2019, 100% of the service charges collected by hotels, restaurants and similar establishments shall now be distributed equally among all covered workers, excluding managerial employees, pursuant to...more

Getting “Tip”-sy: What Brewers Need To Know About Tip-Pooling Arrangements

Bowditch & Dewey on 9/27/2017

Over the summer, news broke that Surly Brewing Co. was found liable by a Minnesota court for violations of the state’s tip-pooling law. The brewery, which operates a large beer hall in Minneapolis, was accused by a former...more

Reading the Fine Print: Changes in Legal Framework for the Assessment and Display of Service Charges

Foster Garvey PC on 10/20/2016

Service charges, administrative charges, surcharges, house fees—whatever you call those charges assessed for food and beverage service in restaurants and in hotels—the rules about how they need to be disclosed to guests and...more

Are You Adopting a Service Charge Model to Help Raise Wages?

Foster Garvey PC on 1/16/2016

As lawmakers continue to increase the minimum wage in states and cities across the country, many hoteliers and restaurateurs are implementing service charges and tip pools in order to meet rising costs and help workers earn...more

Minimum Wage › Service Charges › Hospitality Industry

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