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Tip Credit Hospitality Industry Department of Labor (DOL)

Fisher Phillips

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

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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

Fisher Phillips

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

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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

Jackson Lewis P.C.

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

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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

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

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

Littler

Littler Lightbulb: August Appellate Roundup

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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

Fisher Phillips

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

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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

Fisher Phillips

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

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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

Whiteford

Employment Law Update: The Tip Credit is Back

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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

Vedder Price

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

Vedder Price on

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

Benesch

Federal Court Strikes Down Tip Credit Rule Promulgated by the DOL

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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

Jackson Lewis P.C.

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

Jackson Lewis P.C. on

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

Franczek P.C.

5th Circuit Strikes Down 2021 Tip Rule

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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

Fisher Phillips

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

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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

Fisher Phillips

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

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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

Seyfarth Shaw LLP

Argument Update: Fifth Circuit Panel Seems Poised to Vacate DOL’s 2021 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

Tonkon Torp LLP

The Service Industry Must Revisit Tipping Policies or Prepare to Pay Up

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Recent news of six-digit demands and lawsuits filed by the Department of Labor against multiple Oregon-based institutional restaurant chains has local businesses across the service industry wondering: “Are we tipping our...more

Fisher Phillips

Workplace Law Forecast 2024 - Your workplace law recap for 2023 and predictions for 2024 to help you prepare for the coming year.

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When I reflect on the relationship that our firm has with our clients, I’m most proud of the fact that you can always count on us. That often means defending complex litigation, steering you through regulatory threats,...more

Clark Hill PLC

The Learned Concierge - November 2023, Vol. 2

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The Learned Concierge Welcome to your monthly legal insights on the trends impacting the Retail, Hospitality, and Food & Beverage Industries....more

Fisher Phillips

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

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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

Fisher Phillips

Workplace Law Update: 22 Essential Items on Your August To-Do List

Fisher Phillips on

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

Parker Poe Adams & Bernstein LLP

Federal Court Rejects Challenge to DOL Tip Credit Rule

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

FordHarrison

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

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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

Fisher Phillips

Labor Department’s “New” Tip Credit Rule is Here to Stay…For Now: A 10-Step Plan for Hospitality Employers

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A federal court just refused to block the U.S. Department of Labor’s infamous 80/20 rule, which applies to employers that take the tip credit toward their minimum wage obligation under federal wage and hour law – which means...more

Parker Poe Adams & Bernstein LLP

Appeals Court Reopens Door for Injunction to Stop the New Tip Rule

In 2021, the U.S. Department of Labor’s Wage and Hour Division issued new regulations dealing with the Fair Labor Standards Act’s tip credit. The tip credit allows employers to pay a $2.13 hourly minimum wage to tipped...more

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