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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
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
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
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
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
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
For years, Kentucky has been one of the few outlier states that further complicated tip pooling by requiring all tip pools to be voluntary. While federal regulations have flipped and flopped with the tide of the changing...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
Restaurants are getting hit with tip-pooling class action lawsuits. Now is the time to audit your practices, or, at the very least, review your tip pooling policies. This is especially important for Minnesota restaurateurs,...more
If January's minimum wage, tip, and overtime developments forecast what employers should expect throughout the remainder of the year, it could be a challenging 2020....more
Q: I heard New York is changing its rules around tip credits for some types of employees. What do I need to know? ...more
Happy 2020! Welcome to the first edition of Policy Matters in this Presidential election year! Understandably, most of the Capitol’s attention has been focused on impeachment proceedings (or the lack thereof) and the conflict...more
Following months of political maneuvering, including a gubernatorial veto, Connecticut has enacted compromise legislation that attempts to clarify how restaurants and other hospitality industry employers must pay workers who...more
Governor Lamont signs House Bill 7501 into law on January 6, 2020. As we say goodbye to 2019 (and await commencement of the 2020 session of the Connecticut General Assembly in February), the General Assembly via a “Special...more
With the start of a new year, in-house counsel and human resources professionals will want to be aware of what’s on the horizon for 2020 and beyond. It’s a good time for employers to take a breath and consider what issues...more
For over a year, New York State employers harbored concerns that New York State would enact rules that would eliminate their ability to apply a tip credit towards the wages of employees who earn tips. ...more
The Connecticut Legislature has passed legislation mandating that the state’s minimum wage regulations incorporate the “80/20” or “20%” tip credit rule. Governor Ned Lamont is expected to sign House Bill No. 7501, “An Act...more
As we approach the end of the year, it is critical to remember and implement some of the new legal requirements that go into effect in New York on December 31, 2019. Failure to comply with these requirements could subject an...more
Minimum wage laws can affect businesses of all sizes, whether operating nationwide, in multiple jurisdictions, or only in one state, county, or city. To help manage this challenge, below we provide a rates-only update that...more