Tip Credit

News & Analysis as of

Tip-Toeing Around Class Actions: Can a “No Tipping” Policy End Wage and Hour Litigation in the Hospitality Industry?

Joining a budding national trend, renowned restaurateur Danny Meyer of Union Square Hospitality Group last week announced that he will eliminate formal tipping at his restaurants starting in 2016. Meyer stated that the new...more

City of Birmingham Raises Minimum Wage, Establishes Severe Employer Penalties in Aggressive Wage and Hour Ordinance

On August 18, 2015, the Birmingham, Alabama, City Council passed an aggressive wage and hour ordinance that raises the minimum wage to $10.10 by July 1, 2017. Presently, the minimum hourly wage in Alabama is $7.25, which is...more

Fifth Circuit Tips Its Hand as to Analysis of FLSA’s Tip Credit

Restaurants throughout the Fifth Circuit, and even beyond, should review the recent decision of Montano v. Montrose Restaurant, which discusses the often tricky and always fact-intensive question of whether a restaurant...more

Montgomery County, Maryland Joins the Jurisdictions Requiring Paid Sick Leave, Alters the Employer Tip Credit

The Montgomery County, Maryland Council recently passed two amendments to the County Code that impact employers. First, the County has joined in the recent trend of mandatory sick leave laws by requiring employers with one...more

The New Highest Minimum Wage in the Country: Emeryville Expected to Reach $16 Per Hour by 2020

As of this week’s vote, the small California city of Emeryville, which is located in San Francisco’s Bay Area, is slated to have one of the highest minimum wage rates in the country. As expected, on June 2, 2015, the...more

A Tip for Employers: Be Aware of How the Department of Labor Interprets Its Regulations

This story applies directly only to the restaurant industry, but it is a cautionary tale for every employer in Connecticut subject to the Department of Labor’s authority to write and interpret its regulations....more


Who, What, Why . . . Who does it apply to: Employers who take the “tip credit” against wages of some or all of their employees....more

U.S. DOL Suffers Set Back on Tip-Pooling Regulations

A federal district court recently invalidated regulations issued by the U.S. Department of Labor (DOL) that prohibit employees from including non-tipped employees in a tip pool in certain situations. ...more

Court Partially Dismisses and Denies Conditional Certification In Tip-Credit Case

Anyone who has dined at a restaurant is aware of the importance of tipping, even if the exact rules, like the percentage and how it should be calculated, may be a bit fuzzy at times. From the standpoint of the restaurant,...more

Florida's Minimum Wage Increased for 2013

Florida is one of only 10 states which ties its minimum wage rate to the annual rate of inflation as reflected in the federal Consumer Price Index (CPI). Thus, every year the Florida Department of Economic Opportunity must...more

Florida May Change Wage Payments For Tipped Employees

On February 16th the Commerce and Tourism Committee of the Florida Senate reported favorably on a bill that would allow Florida employers to fundamentally alter the way that tipped employees are paid. Senate Bill 2106 is...more

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