News & Analysis as of

Minimum Wage Service Charges

Fisher Phillips

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

Fisher Phillips on

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

Fox Rothschild LLP

D.C. Hospitality Employers Must Disclose Mandatory Service Fees

Fox Rothschild LLP on

The Office of the Attorney General for Washington D.C. (OAG) recently reminded hospitality employers in the city who use mandatory service charges and other fees that they must properly disclose such charges to guests under...more

Bowditch & Dewey

Rhode Island Enacts “Tip Protection” Law

Bowditch & Dewey on

On June 28, 2022, Rhode Island enacted new “tip protection” legislation. The law, which applies to all employers of tipped employees, prohibits employers from retaining employee tips, creates new requirements for tip pools,...more

Fisher Phillips

Service Charges Could Be Solution to Tip Credit Challenges: An Employer’s 6-Step Guide

Fisher Phillips on

Hospitality employers who utilize the “tip credit” under federal wage and hour law may feel as if they operate with a bullseye on their backs given the multi-prong assault underway against the practice. Not only are you in...more

Littler

Salt Bae’s Sprinkle of First Impression: Eleventh Circuit Holds Mandatory Service Charges Are Not “Tips” and May Be Used to...

Littler on

On March 18, 2022, the U.S. Court of Appeals for the Eleventh Circuit upheld a district court’s decision that an 18% service fee charged at the upscale Miami steakhouse of celebrity chef Nusret Gökçe was not a “tip” and was...more

Jackson Lewis P.C.

Restaurant’s Mandatory Service Charge Was Not a Tip and May Satisfy FLSA Wage Requirements, Eleventh Circuit Holds

Jackson Lewis P.C. on

A Miami restaurant’s mandatory 18% service charge did not constitute a “tip” under the Fair Labor Standards Act (FLSA) and therefore was properly applied toward satisfying the FLSA’s employee wage requirements, the U.S. Court...more

Ervin Cohen & Jessup LLP

West Hollywood Establishes Highest Minimum Wage In The Nation 

At a city council meeting which began on November 3, 2021, and ended on November 4, 2021, the West Hollywood City Council voted to increase the minimum wage for hourly workers in West Hollywood. In response to significant...more

Jackson Lewis P.C.

Mandatory Gratuities Are Not “Tips” But May Qualify As Commissions Under The FLSA, Fourth Circuit Holds

Jackson Lewis P.C. on

Agreeing with the district court, the Court of Appeals for the Fourth Circuit has concluded that the mandatory service charges imposed by a restaurant on dining parties of six or more were not “tips” under the FLSA. However,...more

Littler

Littler Global Guide - Philippines - Q3 2019

Littler on

Beginning September 3, 2019, 100% of the service charges collected by hotels, restaurants and similar establishments shall now be distributed equally among all covered workers, excluding managerial employees, pursuant to...more

Bowditch & Dewey

Getting “Tip”-sy: What Brewers Need To Know About Tip-Pooling Arrangements

Bowditch & Dewey on

Over the summer, news broke that Surly Brewing Co. was found liable by a Minnesota court for violations of the state’s tip-pooling law. The brewery, which operates a large beer hall in Minneapolis, was accused by a former...more

Foster Garvey PC

Reading the Fine Print: Changes in Legal Framework for the Assessment and Display of Service Charges

Foster Garvey PC on

Service charges, administrative charges, surcharges, house fees—whatever you call those charges assessed for food and beverage service in restaurants and in hotels—the rules about how they need to be disclosed to guests and...more

Foster Garvey PC

Are You Adopting a Service Charge Model to Help Raise Wages?

Foster Garvey PC on

As lawmakers continue to increase the minimum wage in states and cities across the country, many hoteliers and restaurateurs are implementing service charges and tip pools in order to meet rising costs and help workers earn...more

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