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Tips Appeals

Fisher Phillips

Appeals Court Strikes Down Onerous 80/20/30 Tip Credit Rule: 7 Things Hospitality Employers Should Know About This Win

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A federal appeals court just delivered some good news to hospitality employers by blocking the Department of Labor’s infamous 80/20/30 rule, providing immediate relief to employers around the country by vacating the...more

Parker Poe Adams & Bernstein LLP

Appeals Court Reopens Door for Injunction to Stop the New Tip Rule

In 2021, the U.S. Department of Labor’s Wage and Hour Division issued new regulations dealing with the Fair Labor Standards Act’s tip credit. The tip credit allows employers to pay a $2.13 hourly minimum wage to tipped...more

Mitchell, Williams, Selig, Gates & Woodyard,...

Restaurant's Mandatory Service Charge Wasn't a Tip

In the current battle to hire and retain good workers, employers have developed creative ways to balance employees’ increased compensation expectations against the costs of running a business. In addition, restaurants using...more

Ogletree, Deakins, Nash, Smoak & Stewart,...

Eleventh Circuit: Service Charges Are Wages, Not Tips, Under FLSA

On March 18, 2022, the Eleventh Circuit Court of Appeals ruled in Compere v. Nusret Miami, LLC, a collective action under the Fair Labor Standards Act (FLSA), that Nusr-et Steakhouse properly used automatically charged fees...more

Ogletree, Deakins, Nash, Smoak & Stewart,...

Massachusetts Supreme Judicial Court Addresses ‘Service Charges’ Under the Massachusetts Tips Act

Massachusetts is seeing an increase in Tips Act claims, and the Massachusetts Supreme Judicial Court (SJC) just reinforced that a lack of clarity in fee- and tip-related documentation may result in employer liability,...more

Foley Hoag LLP

Massachusetts Supreme Judicial Court Rules Mislabeled Administrative Fee Must Be Paid to Service Employees under Tips Act

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On August 23, 2021, the Massachusetts Supreme Judicial Court ruled in Hovagimian v. Concert Blue Hill, LLC, that the Massachusetts Tips Act requires that an employer pay service employees any “service charge” listed on an...more

Fisher Phillips

December 2020: The Top 18 Labor And Employment Law Stories

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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 for the past few years—and this past month...more

Ogletree, Deakins, Nash, Smoak & Stewart,...

Second Circuit Holds “Delivery Fee” Is Not a Gratuity for Delivery Drivers

In a 5-page summary order issued on March 5, 2020, the U.S. Court of Appeals for the Second Circuit held in Belizaire v. Ahold U.S.A., Inc., No. 19-457-cv, that the “delivery fee” paid by customers of Peapod LLC, a grocery...more

Littler

WPI Wage Watch: Minimum Wage, Tip, and Overtime Developments (December 2019 Edition)

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We remember when legislative and regulatory developments rarely occurred in December, but those days are behind us. A Reminder About New Year's Eve & New Year's Day Rate Increases: Many minimum wage, tipped and exempt...more

Payne & Fears

Key California Employment Law Cases: November 2019

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Carroll v. City & Cnty. of S.F., 41 Cal. App. 5th 805, 254 Cal. Rptr. 3d 519 (2019) - Summary:  Each alleged reduction of monthly disability retirement benefit payments for discriminatory reasons was continuing violation...more

Epstein Becker & Green

California Court Rules That Mandatory Service Charges May Be Gratuities

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Upsetting what many considered settled precedent, a California Court of Appeal has held that a mandatory service charge may qualify as a “gratuity” under California Labor Code Section 351 that must be distributed to the...more

Fisher Phillips

California Court Rules That Food And Beverage Service Charges May Qualify As Gratuities

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A California appellate court just held that mandatory service charges added by banquet facilities to their contracts may need to be paid to banquet service employees essentially as a form of a gratuity. The October 31, 2019...more

Fisher Phillips

October 2018: The Top 14 Labor And Employment Law Stories

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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 for the past few years—and this past month...more

FordHarrison

Ninth Circuit Perpetuates Uncertainty in 80/20 Rule for Employers of Tipped Workers

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On September 18, 2018, a year after a three-judge panel of the United States Court of Appeals for the Ninth Circuit affirmed the dismissal of Marsh v. J. Alexander’s LLC, 869 F.3d 1108, a larger en banc panel of the court has...more

Littler

WPI Wage Watch: Minimum Wage & Overtime Developments (July Edition)

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Usually legislative and regulatory developments slow down in the summer months, which is good news because July brings more pressing matters than reading bills or proposed rules, like eating too many hot dogs or yelling at an...more

Fisher Phillips

Serenity Now – Looking Back On USDOL's Actions Mid-Year, And A Sneak Peek At What Might Be Coming

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We are almost half way through 2018, and this year has been filled with fast and furious changes at USDOL. Proposed tip credit changes (Check, including a reaction from Congress and more tip credit changes on the horizon)....more

Foster Garvey PC

The Tip Pooling Saga: What Employers Need to Know with Tip Pooling Being Legal Once Again

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Just when it seemed that service charges were all the rage, tip pooling has reemerged to grab the headlines. Making the rounds from courts to agencies, and now Congress, the issue appears to have been settled by Congress that...more

Fisher Phillips

Here's a Tip: Tread Carefully

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As we previously wrote, Congress has now amended Section 3(m) of the federal Fair Labor Standards Act (FLSA) to prohibit an employer from "keep[ing] tips received by its employees for any purpose, including allowing managers...more

Foley & Lardner LLP

Ninth Circuit Deviates from Guidance and Other Authority on Tip Credits

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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

Payne & Fears

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

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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

Holland & Knight LLP

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

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• 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

McAfee & Taft

Employers’ right to keep employee tips

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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

Fisher Phillips

Valet Driver's FLSA Tip Claim Fails

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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

Littler

Fifth Circuit Rules on Tip Pooling

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In Montano v. Montrose Restaurant Associates, Inc., the U.S. Court of Appeals for the Fifth Circuit was presented with what may seem like an easy issue:  does including a “coffeeman” in a tip pool invalidate the tip credit? ...more

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