News & Analysis as of

Tipped Employees

Here’s A Tip, Minnesota: Discharging Employees For Refusing To Share Gratuities Is Prohibited

by Jackson Lewis P.C. on

Discharging an employee for refusing to share tips is illegal under the Minnesota Fair Labor Standards Act (MFLSA), according to the Supreme Court of Minnesota. Burt v. Rackner, Inc., 2017 Minn. LEXIS 629 (Minn. Oct. 11,...more

Food & Beverage Litigation Update | October 2017 #2

by Shook, Hardy & Bacon L.L.P. on

Chicago Repeals SSB Tax After Two Months of Enforcement - Chicago officials have voted to repeal a sugar-sweetened beverage (SSB) tax approved in November 2016 by the Cook County Board of Commissioners but delayed by a...more

Florida’s Minimum Wage Rises to $8.25 in 2018

Florida’s minimum wage will increase effective January 1, 2018 as follows: - Florida’s minimum wage will increase by 15 cents from $8.10 to $8.25 per hour. - Florida’s minimum wage for tipped employees will increase by 15...more

Are Restaurant No-Tipping Policies the Product of an Antitrust Conspiracy?

In July of 2013, Danny Meyer, the CEO of the Union Square Hospitality Group, tweeted that he was considering eliminating tipping at his restaurants and solicited the opinion of other restaurant owners. Meyer and others...more

Ninth Circuit Rejects DOL's Interpretation of Tip Credit Rule

Employees who receive gratuities may qualify for a special federal minimum wage set well below the standard $7.25 per hour. Employers are entitled to use the employees’ tips to reach the full minimum wage under the Department...more

WPI Wage Watch: Minimum Wage and Overtime Updates (September Edition)

by Littler on

September may mean saying goodbye to summer, but minimum wage and overtime developments across the country are still going strong. A nominee to lead federal wage and hour enforcement efforts has been put forward, labor...more

Do Customer Tips Belong to the Employee or Employer? DOL Puts the Question on the Table

by Nexsen Pruet, PLLC on

When a customer leaves a tip for a server, who receives the full amount of the tip at the end of the day? According to a 2011 Department of Labor (DOL) regulation, the tip always belongs to the server, even if the employer...more

Ninth Circuit Deviates from Guidance and Other Authority on Tip Credits

by Foley & Lardner LLP on

We have previously discussed how the Department of Labor (DOL) often issues guidance to assist employers in applying and complying with the DOL’s various regulations. The federal courts generally follow this guidance when...more

Ninth Circuit Rejects DOL’s “80/20 Rule” for Sidework: What This Means for Employers of Tipped Employees

by Payne & Fears on

The Ninth Circuit Court of Appeals recently rejected the U.S. Department of Labor’s (“DOL”) tip-credit guidance, commonly known as the “80/20 rule,” as well as its guidance on tasks unrelated to a tipped occupation. The...more

Restoring Common Sense To Determining Who is a Tipped Employee. Case Summary: Marsh v. J Alexander’s

by Buchalter on

In Marsh v. J. Alexander’s, The Ninth Circuit issued a fundamentally important opinion supporting the hospitality industry nationwide. Specifically, the Ninth Circuit rejected the U.S. Department of Labor’s (“DOL”) disastrous...more

Minnesota Restaurateurs: Get Compliant with Tip Statutes Before Super Bowl LII

by Nilan Johnson Lewis PA on

Super Bowl LII at U.S. Bank Stadium presents a great opportunity for Minneapolis restaurateurs to generate significant income from parties hosted before and during the big game. With that opportunity, though, comes the...more

Ninth Circuit Rejects DOL's Interpretation of the "Dual Jobs" Regulation for Tipped Employees

by Littler on

On September 6, 2017, the Ninth Circuit Court of Appeals declined to accord deference to the U.S. Department of Labor's (DOL) interpretation of its "dual jobs" regulation. The court reasoned that the interpretation, as...more

Ninth Circuit Rejects DOL's Interpretation of the "Dual Jobs" Regulation for Tipped Employees

by Littler on

On September 6, 2017, the Ninth Circuit Court of Appeals declined to accord deference to the U.S. Department of Labor's (DOL) interpretation of its "dual jobs" regulation. The court reasoned that the interpretation, as...more

Hospitality Employers Beware: Confusion of the Use of the Tip Credit Persists

by Holland & Knight LLP on

• The Ninth Circuit recently rejected federal Department of Labor (DOL) interpretive guidance that banned employers from using the federal tip credit for time spent on non-tip-generating activities if those tasks exceed 20...more

Ninth Circuit Cooks Up Rejection of Servers’ Claims and Sends DOL’s 20% Tip Credit Rule Back to the Kitchen, Creating Circuit...

by Seyfarth Shaw LLP on

Seyfarth Synopsis: The Ninth Circuit has created a circuit split by rejecting the DOL’s interpretation of FLSA regulations on use of the tip credit to pay regularly tipped employees, finding that the interpretation is both...more

Department of Labor Moves to Rescind 2011 Tip Pooling Regulations

by Baker Donelson on

On July 20, 2017, the Department of Labor (DOL) indicated via the federal government's Unified Agenda of Regulatory and Deregulatory Actions that it plans to propose a rule that would rescind some of the more onerous...more

Department of Labor Rule Rescissions Are on the Rise

by Baker Donelson on

The Department of Labor (DOL) has recently issued a number of proposed rulemakings, which serve the sole purpose of rescinding prior rules or regulations. After the delayed appointment of a Secretary of Labor, it appears the...more

DOL’s “80/20” Tip Credit Rule Entitled To No Deference, Ninth Circuit Holds, Creating Circuit Split

by Jackson Lewis P.C. on

Finding it wholly inconsistent with the statute and the regulation it purports to interpret, the Ninth Circuit has held invalid the United States Department of Labor’s “80/20” tip credit rule, or “20% Rule,” which limits the...more

The Ninth Circuit Affords No Deference to the DOL's 80/20 Tip-Credit Guidance—Creating a Circuit Split and Potentially Setting Up...

by FordHarrison on

On September 6, in Marsh v. J. Alexander’s LLC, the Ninth Circuit Court of Appeals refused to give deference to the U.S. Department of Labor’s (“DOL”) tip-credit guidance under the Fair Labor Standards Act (“FLSA”). The...more

Relishing the Moment: Tenth Circuit Allows Restaurant to Keep Server Tips and Rejects DOL Regulation

In a victory for restaurant employers, the Tenth Circuit Court of Appeals has ruled that Relish Catering can keep customer tips without violating the Fair Labor Standards Act (FLSA), so long as the employee is paid at an...more

Restaurant Industry Headed To U.S. Supreme Court Over Tipping Practices

by PilieroMazza PLLC on

In 2014, the U.S. Department of Labor (“DOL”) Wage and Hour Division launched an aggressive enforcement initiative aimed at ensuring companies in the restaurant and food service industry comply with the federal minimum wage,...more

WPI Wage Watch: Minimum Wage and Overtime Updates (July Edition)

by Littler on

It’s summertime, but the living is anything but easy for employers trying to track minimum wage and overtime developments. The U.S. Department of Labor is defending legal challenges to various rules the Obama administration...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

Employers’ right to keep employee tips

by McAfee & Taft on

A recent decision by the federal appeals court that covers Oklahoma ruled that employers are not required to share customer tips with employees who are already receiving wages at or above the minimum wage amount....more

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