News & Analysis as of

Tipped Employees Department of Labor (DOL) Corporate Counsel

Jackson Lewis P.C.

Federal OBBBA Round-Up: What Employers Need to Know Now

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President Donald Trump signed H.R. 1, “One Big Beautiful Bill Act” (OBBBA), on July 4. The OBBBA affects a wide range of workplace issues, including immigration, benefits, and employment tax liabilities. Below is only a brief...more

Fisher Phillips

Restaurant Owner Learns Dangers of Comingling Employees Between Locations – 4 Lessons for Hospitality Employers

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Federal wage officials recently announced that two Florida restaurants with common ownership failed to properly calculate overtime pay when their employees worked at both locations in the same workweek – sending a stark...more

Jackson Lewis P.C.

2022 Wage and Hour Developments: A Year in Review

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In 2022, federal and state laws regulating wages and hours of work continued to change and develop. In “2022 Wage and Hour Developments: A Year in Review,” we look back on significant wage and hour developments at the federal...more

Fisher Phillips

The Top 15 Workplace Law Stories from October 2021

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It’s hard to keep up with all the recent changes to labor and employment law. While the law always seems to evolve at a rapid pace, there have been an unprecedented number of changes for the past few years—and this past month...more

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

DOL’s Dual Jobs Final Rule: Will It Be a Horror Show for Employers?

On October 28, 2021, the U.S. Department of Labor (DOL) released a final rule that may cause many employers in the restaurant, hospitality, and service industries to rethink and/or end their use of tip credits under the...more

Fisher Phillips

June 2021: The Top 19 Labor And Employment Law Stories

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It’s hard to keep up with all the recent changes to labor and employment law. While the law always seems to evolve at a rapid pace, there have been an unprecedented number of changes for the past few years—and this past month...more

Benesch

U.S. Department of Labor Proposes Employee-Friendly Rules for Tipped Workers

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On June 21, 2021, the U.S. Department of Labor (“DOL”) introduced a proposed rule which, when effective, would impose increased limitations on when an employer can pay a tipped worker the “tipped minimum wage.” The proposed...more

Fox Rothschild LLP

DOL Proposes Rules To Limit ‘Side Work’ For Tipped Employees And Regulate Tip Credits

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On June 21, 2021, the U.S. Department of Labor (DOL) announced proposed rules setting forth new tip regulations under the Fair Labor Standards Act (FLSA). These new rules would reinstate the so-called “80/20” rule under...more

Littler

Labor and Employment Rulemaking Prominent in President Biden’s First Regulatory Agenda

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On June 11, 2021, the federal government released its unified federal regulatory agenda for spring 2021, which outlines regulatory and deregulation actions agencies expect to take in the coming months....more

Fisher Phillips

December 2020: The Top 18 Labor And Employment Law Stories

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It’s hard to keep up with all the recent changes to labor and employment law. While the law always seems to evolve at a rapid pace, there have been an unprecedented number of changes for the past few years—and this past month...more

Amundsen Davis LLC

New Rules For Tipped Employees To Take Effect In February 2021

Amundsen Davis LLC on

On December 22 the Federal Department of Labor (DOL) published a Final Rule changing the FLSA regulations for tipped employees. The Final Rule takes effect 60 days after publication. A caveat before we dig into the Final...more

Polsinelli

Department of Labor Announces Annual Increase to Minimum Wage for Federal Contractors

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On August 31, 2020, the Department of Labor’s Wage and Hour Division published its annual update to the minimum wage for federal government contractors.  As of January 1, 2021, employees performing services on or in...more

Littler

Fall Regulatory Agenda Indicates DOL Wage and Hour Division is Working on Seven Regulatory Priorities

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The U.S. Department of Labor issued its bi-annual regulatory agenda update on November 20, 2019.  Of the 63 items listed, the Wage & Hour Division (WHD) included seven regulatory priorities.  Only one of these is new: a...more

Jackson Lewis P.C.

Wage And Hour Developments 2018: A Year In Review

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The law regulating the payment of wages and work hours is a vibrant area: the “fight for $15.00”; battles over who can receive tips (and whether the tip credit should be eliminated entirely); whether workers should be given...more

Littler

DOL Re-Issues 2009 Opinion Letter and Loosens Rules to Apply a Tip Credit to Employees Who Perform Side Work

Littler on

On November 8, 2018, the U.S. Department of Labor (DOL) reissued and adopted a nearly decade-old opinion letter to clarify how employers must pay tipped employees who perform dual jobs. ...more

Laner Muchin, Ltd.

Recent Ninth Circuit Decision Highlights An Employer’s Obligation Under the Dual Jobs Regulation Of The FLSA

Laner Muchin, Ltd. on

On September 18, 2018, the Ninth Circuit Court of Appeals issued a decision which once again brings to the forefront employers’ obligations under the Fair Labor Standards Act (FLSA) and other state minimum wage laws....more

Jackson Lewis P.C.

FLSA Amendment Bars Employers From Retaining Tips But Removes DOL Prohibition On Tip Sharing

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An amendment to the Fair Labor Standards Act (FLSA) in the omnibus budget bill, “Consolidated Appropriations Act, 2018,” passed by Congress and signed by President Donald Trump on March 23, 2018, provides that an employer...more

Seyfarth Shaw LLP

The Tenth Circuit Takes the DOL Tipping Rule Off the Menu

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Seyfarth Synopsis: An unpopular DOL regulation that prohibits employers from retaining customer tips received another blow this summer. The Tenth Circuit joined the Fourth Circuit and several district courts in holding that...more

FordHarrison

Tenth Circuit Rules Employer That Pays More Than Minimum Wage Does Not Have to Share Customers' Tips With Employees

FordHarrison on

On June 30, 2017, the U.S. Court of Appeals for the Tenth Circuit ruled in Marlow v. The New Food Guy, Inc. d/b/a Relish Catering (Relish) that neither the Fair Labor Standards Act (FLSA) nor a Department of Labor (DOL)...more

Fisher Phillips

Valet Driver's FLSA Tip Claim Fails

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In a welcome decision for employers, the Eleventh Circuit U.S. Court of Appeals (having jurisdiction over Alabama, Florida, and Georgia) recently ruled that a tipped employee for whom no federal Fair Labor Standards Act "tip...more

Jackson Lewis P.C.

Federal Court In Florida Is Latest To Reject DOL Regulation, Finds FLSA Does Not Require That Employees Receiving Full Minimum...

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While Department of Labor regulations interpreting the FLSA remain the primary source of employer guidance regarding the Act’s requirements, they are not necessarily the final word on what federal wage law requires. This is...more

Parker Poe Adams & Bernstein LLP

Seventh Circuit Rejects Dual Minimum Wage Requirement for Tipped Workers Who Perform Other Duties

The hospitality industry continues to face an increasing number of collective action lawsuits filed by tipped employees who claim that their employers failed to comply with minimum wage requirements for servers and related...more

BakerHostetler

Seventh Circuit Clarifies Rules for Compensating Tipped Employees Performing Non-tipped Work

BakerHostetler on

The Fair Labor Standards Act (FLSA) and most states permit restaurants to pay tipped employees a tip-credit rate, an amount less than the minimum wage with the expectation that tips will make up the difference. It goes...more

Seyfarth Shaw LLP

Seventh Circuit Serves Up Employer-Friendly Recipe For Compensating Tipped Employees

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Many employers, particularly in the hospitality industry, pay tipped employees less than the minimum wage. They do so anticipating that tipped employees will receive tips from customers that push employees’ income above...more

Foster Garvey PC

Bad News for Employers: In a Surprise, Ninth Circuit Upholds Tip Pooling Regulations

Foster Garvey PC on

Unsurprisingly, and in direct response to the Woody Woo decision, in May 2011, DOL issued new regulations regarding tips. Under those regulations, DOL interpreted the FLSA such that tips are the property of the tipped...more

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