News & Analysis as of

Tip-Pooling Hospitality Industry

Fisher Phillips

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

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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

Fisher Phillips

Game-Changing SCOTUS Ruling Serves Up a Menu of Possibilities for Hospitality Employers: Your 4-Step Action Plan Post-Chevron

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The Supreme Court’s recent landmark ruling that gives employers a powerful tool to fight back against regulatory overreach will have a broad impact on just about every area of workplace law – and every industry. We’re looking...more

Fisher Phillips

Massachusetts High Court Clears Way for Ending the Tip Credit: What Do Bay State Restaurant Operators Need to Know?

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Massachusetts voters will decide this November whether employers may continue taking a “tip credit” and paying tipped employees below the state’s standard minimum wage. While restaurant industry representatives fought to keep...more

Fisher Phillips

Can Restaurant Hosts Share in the Tip Pool? Top 5 Questions for Employers that Take a Tip Credit

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Many restaurants utilize tip pools to encourage teamwork, consistency, and customer-focused service – but you may be confused about who can and can’t participate in the pool. You feel confident that your servers and...more

Parker Poe Adams & Bernstein LLP

Eleventh Circuit Confirms That Service Charges Are Not FLSA Tips

The tip wars between hospitality employers and employees continue unabated. Numerous lawsuits contend that restaurants and other employers wrongfully retain or require sharing of customer gratuities, as well as violate Fair...more

Tonkon Torp LLP

The Service Industry Must Revisit Tipping Policies or Prepare to Pay Up

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Recent news of six-digit demands and lawsuits filed by the Department of Labor against multiple Oregon-based institutional restaurant chains has local businesses across the service industry wondering: “Are we tipping our...more

Fisher Phillips

Jump On In: Five Steps to Set Up a Lawful Tip Pool in Kentucky

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Tipping is everywhere: the coffee shop, the florist, and even the dry cleaner! This booming tip culture has led many employers that may not have traditionally established a tip pool to consider using one to ease the impact of...more

Fisher Phillips

Are You Properly Paying Your Bell Staff? 5 Top Questions for Hotels that Take a Tip Credit

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Hotel staff often include a mix of tipped and non-tipped jobs, but following wage and hour rules isn’t always easy, particularly if employees perform a variety of tasks. Some workers — such as servers and bartenders — may...more

Littler

Dear Littler: How Do Restaurants Without Table Service Handle Tips?

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Dear Littler, We operate sandwich shops in a couple of states. Although we have tables, we don’t have table service, and customers pick up food at the counter themselves to either take out or seat themselves at our...more

Fisher Phillips

Can You Include Sushi Chefs — and Other Unique Positions — in Your Tip Pool? 5 Key Questions for Restaurateurs to Review

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Do you utilize a tip pool in your restaurant? If so, you are likely aware of the various rules on maintaining a valid, lawful tip pool under the federal Fair Labor Standards Act (FLSA) and applicable state laws. You surely...more

Fisher Phillips

Restaurant Owner Learns Dangers of Comingling Employees Between Locations – 4 Lessons for Hospitality Employers

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Federal wage officials recently announced that two Florida restaurants with common ownership failed to properly calculate overtime pay when their employees worked at both locations in the same workweek – sending a stark...more

Kohrman Jackson & Krantz LLP

The DOs and DON’Ts of the DOL’s New Tip Credit Rules

Employees in the service industry, such as bartenders and waitstaff, have come to rely on tips as a part of their hourly wages. In fact, most states specifically allow restaurants and bars to pay workers less than minimum...more

Fisher Phillips

The Road to Hell is Paved with Good Intentions: Top 7 Wage and Hour Mistakes for Hospitality Employers to Avoid

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Employers in the hospitality industry have been through it all in recent years – from the devastation of the pandemic to ongoing labor shortages to an impending recession. These challenges and dramatic changes have surely...more

Fisher Phillips

4 Reminders for Employers After a Texas BBQ Chain’s $900K Tip Pooling Mistake

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Employers in the restaurant and hospitality industries know it’s a common practice to ask workers to share gratuities. Tip pools can promote teamwork and a better customer experience – but they can also land you in hot water...more

Fisher Phillips

Is Your Tip Credit A Ticking Time Bomb? An Employer’s 10-Step Wage and Hour Action Plan for 2022

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With the government’s final rules on the tips provisions of federal wage and hour law becoming effective just weeks ago, employers will be challenged with ensuring they have a plan to address the rules’ impact on their...more

Fisher Phillips

Feds Now Have Broader Authority to Assess Monetary Penalties for Tip Violations

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Federal labor officials just finalized a rule that broadens their ability to assess monetary fines against those business that commit wage and hour violations with regards to tip payments, a development several months in the...more

FordHarrison

Restaurant Industry Alert: DOL Issues Final Rule Modifying Tip Sharing

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On September 23, 2021, the U.S. Department of Labor (DOL) issued its latest rule related to tip pooling. The rule modifies and clarifies aspects of a rule previously issued by the Trump administration. ...more

Fisher Phillips

Will Tips Apps Lure Workers Back to Work? What Hospitality Employers Need to Know

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The world is opening up again and Americans are venturing out to travel, shop, and dine out. With the sudden rise in leisure and hospitality sales, the industry is facing an increased need for skilled employees – but...more

Parker Poe Adams & Bernstein LLP

Hospitality Employers Would Have to Rethink Assignments Based on New Tip Credit Interpretation

The seemingly never-ending battle over interpretation of the Fair Labor Standards Act’s tip credit provision took another turn Monday. The U.S. Department of Labor’s Wage and Hour Division issued proposed rules that would set...more

Ervin Cohen & Jessup LLP

DOL Proposes New Tip Credit Rule

On June 23, 2021, the U.S. Department of Labor published a Notice of Proposed Rulemaking to limit the amount of non-tip producing work that a tipped employee can perform when an employee is taking a tip credit.  ...more

Roetzel & Andress

Department Of Labor Considers Two Rules Regarding Tipped-Workers’ Wages

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The Department of Labor (DOL) has issued two proposed rules that seek to withdraw the Trump Administration rule regarding the lower minimum wage of $2.13 for tipped workers (the “Tip Rule”). The Trump Administration Tip Rule...more

Foley Hoag LLP

Updated: Department of Labor Issues Final Rule Regarding FLSA Tip Regulations

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UPDATE: The Biden administration has announced that the implementation of this rule will be delayed by 60 days to provide for further review. Originally scheduled to go into effect on March 1, 2021, the rule now has an...more

Jaburg Wilk

Tipping Points – DOL Issues New Opinions About Paying Tipped Employees

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Days before the January 20, 2021, presidential inauguration, the U.S. Department of Labor (DOL), under the outgoing administration, issued a flurry of new regulations, rules and opinion letters that could significantly impact...more

Ballard Spahr LLP

Not So Fast – DOL Suspends Final Rule on Regulations Regarding Tipped Employees

Ballard Spahr LLP on

Summary - On January 26, 2021, the U.S. Department of Labor (DOL) suspended a Final Rule on tipped employees that it previously had announced on December 22, 2020. The Final Rule clarified tip pooling for employees in the...more

Parker Poe Adams & Bernstein LLP

U.S. Labor Department Adopts Final Tip Credit Regulations

On December 22, the U.S. Department of Labor’s Wage and Hour Division issued final regulations effective February 21, 2021, implementing changes to its policies regarding tipped employees. The rules expand circumstances under...more

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