News & Analysis as of

Tipped Employees Fair Labor Standards Act (FLSA)

Bond Schoeneck & King PLLC

“One Big Beautiful Bill Act” Tax Deductions

July 17, 2025 By: Erin M. Callahan and Hilda (Hildy) Marinello Curtin On July 4, 2025, President Donald J. Trump signed the “One Big Beautiful Bill Act” into law. The Act contains hundreds of provisions, including new tax...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

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

It’s Official - No Tax on Tips, No Tax on Overtime Through 2028

One of President Donald Trump’s 2024 campaign messages was a promise to implement a no-tax-on-tips and no-tax-on-overtime law. On July 3, 2025, the U.S. Congress passed the “One Big Beautiful Bill,” and President Trump signed...more

Conn Maciel Carey LLP

The One Big Beautiful Bill’s Overtime and Tax Provisions – Employer Consequences

Conn Maciel Carey LLP on

As we await the House of Representatives’ vote on the One Big Beautiful Bill, let’s highlight two key provisions that may soon impact employers and employees alike. The Senate bill under consideration before the House of...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

Littler

Littler’s Semi-Annual Rates Update for Minimum Wage, Tips, and Exempt Pay Increases on July 1, 2025 (and Other Developments)

Littler on

Summer is upon us. Beaches, barbecues, and wage increases for non-exempt, exempt, and tipped employees! While some might not be as thrilled about the last item, we are excited to help employers across the United States...more

Fox Rothschild LLP

House and Senate Overtime and Tip Tax Proposals: What Employers Need to Know

Fox Rothschild LLP on

Competing House and Senate bills have the potential to reshape how the IRS taxes tips and overtime wages. The Senate recently passed the “No Tax on Tips Act” while the House budget reconciliation bill proposes deductions for...more

Jackson Lewis P.C.

How Will Federal Bills Eliminating Tax on Tips and Overtime Impact Employers?

Jackson Lewis P.C. on

Tax breaks on overtime pay and tipped earnings passed the House on May 22, 2025, as part of the “One Big Beautiful Bill Act” (H.R. 1). The tax deductions provided under the sprawling reconciliation bill would be temporary,...more

Fisher Phillips

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

Fisher Phillips on

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

Littler

Ones To Watch: Legislation Landscape for 2025

Littler on

Three months into the new legislative year, with all but a handful of state legislatures currently in session, several employment law trends for 2025 have emerged. Some of the more significant trends reflect the country’s...more

Amundsen Davis LLC

Department of Labor Clarifies Management Cannot Keep Tips From a Tip Pool and Reverts Back to the Dual Jobs Rule

Amundsen Davis LLC on

In January, the U.S. Department of Labor (DOL) issued an opinion letter clarifying managers and supervisors still cannot receive or keep tips, including from a tip pool. This came shortly after the DOL restored the dual...more

Epstein Becker & Green

Time is Money: A Quick Wage-Hour Tip on … DOL Confirms Managers Are Blocked from Tip Pool Even When Working in Non-Supervisory...

Epstein Becker & Green on

Section 3(m)(2)(B) of the FLSA prohibits employers, including managers or supervisors, from keeping any portion of an employee’s tips. Accordingly, the law has been clear that a manager or supervisor cannot participate in a...more

Jaburg Wilk

Arizona Minimum Wage Increases on January 1, 2025

Jaburg Wilk on

The Arizona minimum wage increased from $14.35 per hour to $14.70 per hour. The latest increase will take effect on January 1, 2025, and will remain in effect until December 31, 2025. This means that Arizona employers will...more

Vedder Price

DOL Reaffirms That Managers And Supervisors May Not Participate In Tip Pools

Vedder Price on

On December 18, 2024, the DOL issued opinion letter FLSA2024-02, reaffirming its position that managers and supervisors are prohibited from participating in tip pools under any circumstances....more

Vinson & Elkins LLP

Five Predictions for President Trump’s Second Administration: Employment and Labor

Vinson & Elkins LLP on

Looking toward a second administration under President-elect Trump, we anticipate a shift toward more employer-friendly labor policies and away from interpretations of law that afforded more expansive protections to...more

Fisher Phillips

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

Fisher Phillips on

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

Jackson Lewis P.C. on

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

Littler

Littler’s Semi-Annual Rates Update for Minimum Wage, Tips, and Exempt Pay Increases on January 1, 2025 (and Other Developments)

Littler on

While Americans across the country headed to the polls to decide who would govern their country, state, county, or city, most decisions were already made concerning what minimum pay rate would govern the employment of...more

Bradley Arant Boult Cummings LLP

Pass the FLSA Sauce! 5 Employment Law Happenings That May Make You Thankful

With Thanksgiving right around the corner, now is the perfect time to reflect on things for which we have to be thankful. In the ever-evolving world of labor and employment law, there have been several significant...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

Troutman Pepper Locke on

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

Steptoe & Johnson PLLC

Federal Appeals Court Deals Mortal Blow to Tipped Employee Regulations

Steptoe & Johnson PLLC on

Details Hospitality employers with tipped employees received welcome news late last month when a federal appeals court overturned the Department of Labor’s (DOL) so-called 80/20/30 Rule, the highlight of a new set of...more

Robinson Bradshaw

Fifth Circuit Strikes Down DOL Tip Rule

Robinson Bradshaw on

On Aug. 23, the Fifth Circuit Court of Appeals invalidated the DOL’s 2021 rule on tip credits under the Fair Labor Standards Act. While the tip credit lives on, the Fifth Circuit’s ruling simplifies compliance for many...more

Morgan, Brown & Joy, LLP

Fifth Circuit Strikes Down Department of Labor’s “80/20” Tip Credit Rule

On August 23, 2024, the Fifth Circuit, in Restaurant Law Center v. U.S. Department of Labor, No. 23-50562 (Aug. 23, 2024), struck down the Department of Labor’s (“DOL”) 2021 rule restricting an employer’s ability to claim tip...more

Jenner & Block

Client Alert: Loper Bright Matters: Fifth Circuit Vacates Agency Action That Had Survived Under Chevron Deference

Jenner & Block on

In a long-awaited decision in Restaurant Law Center v. US Department of Labor, the US Court of Appeals for the Fifth Circuit vacated a US Department of Labor (DOL) regulation governing the way tipped employees are paid,...more

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