News & Analysis as of

Tips Employer Responsibilities Employee Rights

Seyfarth Shaw LLP

1 Big Bill + 2 New Deductions = Multiple New Challenges

Seyfarth Shaw LLP on

The freshly enacted “One Big Beautiful Bill” introduces two above-the-line tax deductions for tips and overtime wages. While these deductions offer potential savings for eligible workers, they come with new compliance...more

Davidoff Hutcher & Citron LLP

Service Charges vs. Tips: Ensuring Legal Compliance in New York Restaurants

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

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

Littler

Chicago Phases Out the Tip Credit Starting July 1, 2024

Littler on

On July 1, 2024, Chicago will take its first step towards eliminating the tip credit. That day, the tip credit amount an employer can claim decreases from 40% to 32% of the applicable minimum wage. Every year thereafter, on...more

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