News & Analysis as of

Nevada’s Recent Minimum Wage Ruling and Best Practices for Employers

Nevada’s minimum wage law continues to be a minefield for employers. On August 14, 2015, in the case of Hancock v. the State of Nevada, the First Judicial District Court held two, key minimum wage regulations as...more

DOL Announces Increase in Minimum Wage Rate for Federal Contractors

The Department of Labor (DOL) has announced that the minimum wage for certain federal contracts will increase to $10.15 per hour beginning January 1, 2016. Additionally, the minimum cash wage that generally must be paid to...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

2016 "Contractor Minimum Wage" Rate Released

The U.S. Labor Department has published the 2016 wage-rate floor required by President Obama's "Establishing A Minimum Wage for Contractors" Executive Order 13658. The Order has been implemented through regulations appearing...more

Federal Contractor Minimum Wage to Increase

As we blogged last year, the President’s Executive Order establishing a minimum wage for certain federal contractor employees requires that the minimum wage be adjusted on an annual basis. In the September 16, 2015 Federal...more

Litigating California Wage & Hour and Labor Code Class Actions

We are excited to announce the 15th edition of Seyfarth Shaw’s publication Litigating California Wage & Hour and Labor Code Class Actions. As in previous editions, the publication discusses and analyzes the most commonly...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

Fifth Circuit Rules on Tip Pooling

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

California Federal District Court Certifies Class of 160,000 Uber Drivers

In O’Connor v. Uber Technologies, Inc. (Filed 09/01/2015, No. C-13-3826 EMC), the United States District Court, Northern District of California, certified a class of approximately 160,000 current and former drivers of Uber in...more

Why Did Uber Lose In Court Today? And How It Can Still Avoid Future Misclassification Liability

Today was not a good day for Uber. It suffered its second setback from the federal district court judge hearing the independent contractor misclassification class action case brought by Uber drivers against the giant...more

California Federal Court Certifies Class of Uber Drivers Seeking Unpaid Tips

On Tuesday, September 1, 2015, Judge Edward M. Chen certified a class of Uber drivers seeking to collect tips they claim they were cheated out of by the ridesharing company. These drivers also allege that they have been...more

Navigating the Treacherous Waters of Tipped Employee Wages

As evening sets, many restaurants will find themselves bustling with customers and loyal patrons eager to put the day's work to rest. But while managers focus on reservations, inventory, food allergies, and table checks,...more

Restaurant Industry Update: Tennessee Court of Appeal Permits Lawsuit under State Tip Law to Proceed

The Tennessee Court of Appeal has held that a bartender can proceed with her lawsuit under §107 of the Tennessee Wage Regulation Act (TWRA), claiming her employer failed to pay her and other similarly situated employees tips...more

West Virginia DOL Withdraws Proposed Emergency Wage and Hour Regulations

In welcome news for employers, the West Virginia Department of Labor (WVDOL) has withdrawn a set of emergency regulations that would have significantly revamped state wage and hour requirements and created conflicts with...more

Reminder: Florida Minimum Wage Increase Effective January 2015

Florida’s minimum wage will increase from $7.93 to $8.05 per hour effective January 1, 2015. Also effective January 1, minimum wage for tipped employees will increase from $4.91 to $5.03 per hour, plus tips (keeping the tip...more

Tip-Related Claims Will Continue to Be Served Up as the Lawsuit du Jour Against the Hospitality Industry in 2015

The hospitality industry is particularly fertile ground for a wide variety of wage and hour issues, which continue to plague management through steadily increasing federal and state department of labor investigations and...more

Missouri Minimum Wage to Increase to $7.65 Per Hour Effective January 1, 2015

On January 1, 2015, the Missouri minimum wage will increase from $7.50 to $7.65 per hour and from $3.75 to $3.825 per hour for tipped employees. Compensation for tipped employees must total at least $7.65 per hour when tips...more

FAQs on Compliance With the Federal Tip Credit

Many employers in the hospitality industry employ individuals who receive customer tips or gratuities in the ordinary course of their work day. These tips may serve as an offset against an employer’s minimum wage obligations...more

“Hurricane” Servers at Pat O’Brien’s File Suit for Stolen Tips and Unpaid Wages

Bartenders at the popular New Orleans watering hole, Pat O’Brien’s, have sued the bar in federal court claiming that managers regularly took money out of their tip jars, causing them to receive less than the minimum wage....more

DOL Hits Restaurant for $800k for Illegal Tip Withholdings

The Department of Labor continued its roundup of restaurants supposedly skirting wage and hour laws, recently reaching a settlement with a Texas-based restaurant for $650k in back wages and $150k in penalties to be split...more

"Summertime and the Livin' Is Easy" Tips to Make Sure "Tips" Don’t Create Problems Down the Road

Summertime can be the high season for many service establishments, such as restaurants, hotels and recreational facilities, as we all take some time to relax and enjoy the weather. But with wage and hour litigation constantly...more

District Court Applies Gulf Oil To Restrict Issuance Of Arbitration Agreements To Prospective Class Members

Drivers brought a putative class action suit against Uber Technologies (“Uber”), the licensor of a software application used to connect drivers for hire with passengers, alleging that Uber failed to remit to drivers the full...more

Ongoing Confusion About Tips, Even From The White House

Recently, I explained that revising the FLSA regulations will not be easy, and highlighted tip credits as one such area in particular. In my last post, I discussed yet another case involving the miscalculation of wages for...more

The 20% Rule For Tips Is Back In The News

We’ve covered tips and tip credits at length in the past, and I could probably blog all day, every day just to keep up with the volume of tip-related cases and actions that are filed nationwide, some high profile and others...more

FINRA Requests Comment on the Effectiveness and Efficiency of its Rules on Gifts and Gratuities and Non-Cash Compensation and its...

As part of an assessment of selected rules and related administrative processes, FINRA has issued Regulatory Notice14-15 and Regulatory Notice14-14 seeking public comment on the effectiveness and efficiency of its (a) Gifts...more

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