News & Analysis as of

Tip-Pooling

Wage and Hour Update: DOL Proposes Changes to FLSA Tip-Pooling Rule

On July 20, 2017, the U.S. Department of Labor (“DOL”) announced that in August it plans to propose rescinding current restrictions on tip-pooling by employers who pay tipped employees the full minimum wage directly. Under...more

July 2017: The Top 12 Labor And Employment Law Stories

by Fisher Phillips on

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 each month in 2017. July was no different,...more

DOL Halts Enforcement of Tip Pooling Rules

In 2011, the Obama Department of Labor (DOL) adopted a rule stating that service industry employers could not implement tip pooling rules, even if they did not claim the tip credit for minimum wage compliance purposes. Tip...more

Employment Law This Week®: Class Action Waiver Cases, Rescission of Tip-Pooling Restrictions, Title VII & Sexual Orientation,...

by Epstein Becker & Green on

We invite you to view Employment Law This Week® - a weekly rundown of the latest news in the field, brought to you by Epstein Becker Green. We look at the latest trends, important court decisions, and new developments that...more

Tip Pools Still too Cold for Swimming out West: Best Practices in Light of DOL Changes

by Davis Wright Tremaine LLP on

The U.S. Department of Labor (DOL) recently announced plans to rescind the 2011 regulation that prohibited employers from distributing tips through mandatory tip pools that include back-of-the-house employees like...more

DOL Announces Intent to Rescind Rule Restricting the Allocation of Gratuities to Non-Tipped Employees When the Employer Does Not...

by Littler on

Restaurants, hotels, and other businesses that employ tipped workers have long wrestled with a seemingly simple, but actually intractable, question: who is entitled to receive a share of a guest’s gratuities? If an employer...more

US Department Of Labor Announces Intention To Repeal Tip-Pooling Regulation

by Cole Schotz on

As set forth in its July 20, 2017 Regulatory Agenda, the United States Department of Labor (“USDOL”) has announced its intention to rescind the controversial 2011 regulation enacted by the Obama Administration (the “2011...more

The Department of Labor Changes Course on Tip-Pooling Restrictions

by FordHarrison on

Quite a bit of effort goes into making an enjoyable restaurant experience, such as good food, prompt service and, of course, cleanliness. Want to reward the dishwashers for providing you with spotless silverware, expediters...more

U.S. Department Of Labor To Revoke Obama-Era Tip-Pool Restriction Regulation

by Fox Rothschild LLP on

Recently, the United States Department of Labor (USDOL) announced that it would begin the process of revoking an Obama-era regulation that restricted which employees could participate in a tip pool. While the revocation of...more

The Triumphant Return of Tip Pooling: DOL Announces Repeal of 2011 Regs

In a welcome sea change for the hospitality industry, the U.S. Department of Labor (DOL) announced on July 20, 2017 that it would repeal the Obama administration’s 2011 regulations that severely curtailed tip pooling. The DOL...more

USDOL To Propose Modified Tip-Pooling Regulation

by Fisher Phillips on

Readers will recall our prior posts regarding the U.S. Department of Labor's regulatory position adopted in 2011 saying that an employer may not retain any of an employee's tips even if it...more

Reflections Upon USDOL "Tip Retention" Enforcement

by Fisher Phillips on

We recently wrote about two federal appellate decisions holding that tipped employees for whom no federal Fair Labor Standards Act Section 3(m) "tip credit" has been taken, and to whom all FLSA minimum wages and overtime...more

Tip-Pooling Restrictions Slated To Be Rescinded, Labor Department Announces

by Fisher Phillips on

The U.S. Department of Labor plans to propose a full rescission of the controversial tip-pooling restrictions impacting employers who pay tipped employees the full minimum wage directly sometime in August, according to a...more

Department Of Labor To Rescind 2011 Tip Pooling Regulation

by Jackson Lewis P.C. on

Yesterday the Trump Administration, through the Office of Management and Budget’s Office of Information and Regulatory Affairs, released the federal government’s semi-annual Unified Agenda of Regulatory and Deregulatory...more

What’s on the Agenda? Tips and OT

by Seyfarth Shaw LLP on

Each spring and fall, Washington waits with bated breath as the Executive Branch releases its regulatory agenda. As the first pronouncement of some of the specifics of the Trump Administration’s regulatory plans, this year’s...more

Valet Driver's FLSA Tip Claim Fails

by Fisher Phillips on

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

Restaurants: Do your employees know that you take the tip credit?

by Franczek Radelet P.C. on

If not, you might have a problem. In 2011, the U.S. DOL published a regulation mandating that restaurants who count tips toward the minimum wage as permitted under the Fair Labor Standards Act have to notify employees...more

Tip Pooling by Restaurant Owners-Remains in Flux

by Goulston & Storrs PC on

Restaurant owners with tipped employees should take note of several recent court cases which may affect their ability to cause restaurant employees to participate in “tip pooling,” particularly in instances where...more

Don’t Be Stingy With Tip Credit Notification...

by Nexsen Pruet, PLLC on

This week, our Charleston office held its Legal Grounds coffee break. The Legal Grounds event provides an opportunity for managers, owners, and human resources personnel in the food and beverage and hospitality industries to...more

National Restaurant Association Seeks Review Of Tip Pooling Rule

by Saul Ewing LLP on

On January 19, the National Restaurant Association (“the Association”) asked the U.S. Supreme Court to review a Department of Labor (“DOL”) rule that prohibits “tip pools,” the sharing of tips among “front of the house” staff...more

Food and Beverage Law Update: December 2016

by Holland & Knight LLP on

Overtime Rules Enjoined Nationwide - In State of Nev. v. U.S. Dep't of Labor Case No. 4:16-cv-00731-ALM, 2016 WL 6879615 (E.D. Tex. Nov. 22, 2016), a Texas district court enjoined nationwide the Department of Labor's...more

Three Workplace Trends that will Impact your Bottom Line in 2017

by McNees Wallace & Nurick LLC on

Employers in the food and beverage industry face countless and ever increasing regulatory challenges, including food safety and handling, labeling, distribution requirements, and on and on. Regulatory compliance often has an...more

Litigating California Wage & Hour and Labor Code Class Actions

by Seyfarth Shaw LLP on

Introduction and Overview - Since the turn of the century, there has been a huge increase in the number of class action lawsuits alleging violations of California’s overtime laws or other Labor Code statutes and wage and...more

Federal Appeals Court Refuses To Reinstate Tip-Pooling Policies - Labor Regulation Banning Such Policies Upheld By 9th Circuit...

by Fisher Phillips on

Restaurants and other hospitality businesses in the Western U.S. received bad news late yesterday as a federal appeals court refused to strike down a controversial tip-pooling regulation. The U.S. Department of Labor’s...more

Another Federal Court Thinks the DOL Is Out to Lunch On Tip Credit Rule

by Seyfarth Shaw LLP on

Seyfarth Synopsis: New decision from Northern District of Georgia rejects the DOL’s interpretation of the FLSA tip credit law. Holds that the FLSA does not regulate tips received by employees who are paid at least minimum...more

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