News & Analysis as of

Restaurant Industry Wage and Hour

Epstein Becker & Green

D.C.’s Tipped Minimum Wage Appears Here to Stay

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Earlier this summer, the Washington, D.C. Council (“Council”) narrowly passed an amendment to the Fiscal Year 2026 Budget (the “Amendment”) partially repealing portions of Initiative 82 and restructuring how tipped workers’...more

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

Maine Law Requires Employee Compensation When Employers Cancel or Shorten Shifts

On June 24, 2025, Maine enacted a new law requiring employers to compensate employees who report to their scheduled shifts but have their hours reduced or cancelled by their employer. This law will primarily impact businesses...more

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

California Law Strengthens Enforcement of Tip Theft

On July 30, 2025, California Governor Gavin Newsom signed into law a bill (Senate Bill 648) that authorizes the state’s labor commissioner to investigate tip theft and levy fines for violations. The new law is particularly...more

Davidoff Hutcher & Citron LLP

How to Structure Real Estate Ownership for Maximum Asset Protection in the Restaurant Industry

For restaurant owners in New York, owning real estate can be a powerful asset—offering stability, long-term equity growth, and operational control. However, real estate ownership also exposes your business and personal wealth...more

Seyfarth Shaw LLP

Where It’s Filed Really Matters: Jurisdictional Limits in Wage and Hour Litigation

Seyfarth Shaw LLP on

The Ninth Circuit’s decision in Harrington v. Cracker Barrel underscores the growing importance of personal jurisdiction in limiting the scope of FLSA collective actions. The court held that employees with no connection to...more

Alston & Bird

Class Action & MDL Roundup | 2025 Q1 – Our Terms Define Class

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Welcome back to the Class Action & MDL Roundup! This edition covers notable class actions from the first quarter of 2025. In this edition, two UK actions fail to clear a low bar, a movie isn’t a video, and spam isn’t...more

Davidoff Hutcher & Citron LLP

Overtime Compliance for New York Restaurant Owners: Avoiding Costly Legal Mistakes

Running a restaurant in New York involves managing a fast-paced, labor-intensive business—and keeping up with employment laws can be overwhelming. One of the most common legal pitfalls restaurant owners face is overtime...more

Holland & Knight LLP

It's up to Localities: Will Colorado Employers See a Decrease in Tipped Minimum Wage?

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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

Cozen O'Connor

Massachusetts AG Cites Restaurant for Alleged Tip Pooling Violations

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Massachusetts AG Andrea Campbell issued citations against restaurant Azumi LLC (Azumi), and its manager for allegedly requiring service employees to share tips with managers in violation of state wage and hour laws....more

Davidoff Hutcher & Citron LLP

Meal and Rest Break Requirements for New York Restaurants: What Owners Need to Know

In the hustle of running a restaurant, it’s easy for meal breaks to slip through the cracks. However, New York law has specific requirements for giving your employees time to eat and rest. Ensuring your staff takes legally...more

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

Davidoff Hutcher & Citron LLP

Tip Pooling and Tip Credit Compliance: A Guide for New York Restaurant Owners

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

Benesch

No Tax on Tips! What President Trump’s Promise May Mean for Your Business

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If you’re a political nerd like me, you may have observed then-candidate and now President Donald J. Trump’s pledge to eliminate taxes on tips. In fact, he doubled down on this promise in his speech to Congress on March 4,...more

Fisher Phillips

California’s Fast Food Council Plans for Next Wage Hike Despite Pushback From Franchise Owners

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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

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

Low-Cost Meals, High-Cost FLSA Mistakes: Lessons From the DOL’s Fining of a Minnesota Pizza Restaurant for Wage and Hour Failures

In December 2024, the U.S. Department of Labor (DOL) fined a Minneapolis pizza restaurant for numerous wage and hour violations....more

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

DOL Clarifies That Managers and Supervisors Can’t Wear Two Hats When It Comes to Tips

On January 14, 2025, the U.S. Department of Labor (DOL) issued Opinion Letter FLSA2025-1 pertaining to managers’ participation in a tip pool at a “quick service restaurant.” ...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

Seyfarth Shaw LLP

Frying the Certification: Fourth Circuit Turns Up the Heat, Reversing Class Certification Decision for Bojangles Shift Managers In...

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Class Certification Recipe Needs More Flavor: The Fourth Circuit tossed out a class certification order for Bojangles’ shift managers, citing a high level of generality in identifying common policies and overly broad class...more

Hinshaw & Culbertson - Employment Law...

The 12 Days of California Labor and Employment Series – Day 10 "Minimum Wage Updates"

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

Fisher Phillips

Massachusetts Voters Retain Current Tip Credit Law – What Does Your Restaurant Need to Know?

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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

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

Seyfarth Shaw LLP

Tips from Seyfarth: Opinion Update – Fifth Circuit Clarifies Scope of its Decision Vacating 80/20 Rule

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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

Falcon Rappaport & Berkman LLP

No Tax on Tips: Pragmatic Tax Proposal or Populist Tax Policy Nightmare?

Recently, both major-party presidential candidates have come out in favor of a “no tax on tips” proposals, though neither candidate has indicated how to implement one. There have been proposals from other legislators, though...more

Troutman Pepper Locke

The Fifth Circuit Strikes Down DOL’s Rule for Tipped Employees

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In a highly anticipated decision published on August 23, 2024, the United States Court of Appeals for the Fifth Circuit struck down the Department of Labor’s (DOL) Final Rule that limited the circumstances under which an...more

Fisher Phillips

California Restaurant Groups Ask Fast Food Council to Slow Down Plans to Hike Minimum Wage Beyond $20 Per Hour

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California’s newly established Fast Food Council was inundated at its September 12 meeting by competing testimony – organized labor on one side and restaurant groups on the other – about potential plans to raise the industry...more

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