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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
Colorado Gov. Jared Polis on June 3, 2025, signed House Bill (HB) 25-1208 into law in an effort to alleviate economic stress on the restaurant industry in Colorado by permitting localities to reduce the minimum wage for...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
Members of California’s Fast Food Council were not deterred by a chorus of franchise owners who gathered at a Jan. 23 meeting to object to plans for another minimum wage increase in the fast-food industry. Here’s the latest...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
In the recent Massachusetts state election, voters faced a pivotal decision on a ballot initiative aiming to eliminate the tip credit system. The proposal sought to require employers to pay tipped employees the full state...more
On September 18, 2024, at the request of the State of Michigan and its attorney general, the Michigan Supreme Court clarified issues relating to future minimum wage rates and minimum cash wage rates for tip-credit employees...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
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
Effective April 1, 2024, a new California law will require employers in the state’s fast casual restaurant industry to pay covered non-exempt employees a minimum wage of $20 an hour. This article summarizes the steps...more
Almost half of the states, and several major localities, will increase their minimum wage rates in 2024, with a majority of the changes effective on January 1, 2024. The table below lists state and certain major locality...more
Last year, California Governor Gavin Newsom signed the FAST Food Accountability and Standards Recovery Act (AB 257), which sought to increase the California minimum wage to $22 per hour, with annual increases thereafter, and...more
Seyfarth Synopsis: California has increased the minimum wage of fast food workers to $20, and authorized the creation of the Fast Food Council comprised of representatives from labor and management to set minimum standards...more
Effective January 1, 2024, the general statewide minimum wage will increase by .50 cents, bringing the hourly rate from $15.50 to $16.00. Please also keep in mind that many (around 35-40) cities and counties in...more
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
On September 11, 2023, industry, government, and union representatives announced that they had reached a deal to remove a California referendum on the Fast Food Accountability and Standards (“FAST”) Recovery Act from the 2024...more
For years, California has led the way in the fast food industry, with several prominent brands having their origins in the Golden State. More recently, California has shown innovation in the ways that the employment of fast...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
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
In the restaurant/service industry, gratuities (To Ensure Prompt Service or “tips”) motivate individuals to seek employment. Everywhere you turn, even if you did not receive any real service, workers are seeking tips....more
On December 30, 2022, a Sacramento County Superior Court judge issued a temporary restraining order blocking the State of California—in particular, the California Department of Industrial Relations—from implementing the...more
California lawmakers just passed the first bill in the nation that aims to enact specific workplace rules and standards for fast-food employees – a move that could have devastating consequences for the industry. The Fast Food...more
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
More bad news for New York City’s fast food employers. The Supreme Court of the State of New York, Appellate Division, First Department has upheld New York City’s Fair Workweek Law in a decision that rejects a challenge from...more
The Department of Labor has issued new tipping regulations, to take effect on March 1, that make a few significant changes, some of which may be advantageous to hospitality employers....more