News & Analysis as of

Tips Fair Labor Standards Act

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

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

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

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

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

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

The Tenth Circuit Takes the DOL Tipping Rule Off the Menu

by Seyfarth Shaw LLP on

Seyfarth Synopsis: An unpopular DOL regulation that prohibits employers from retaining customer tips received another blow this summer. The Tenth Circuit joined the Fourth Circuit and several district courts in holding that...more

Tenth Circuit Rules Employer That Pays More Than Minimum Wage Does Not Have to Share Customers' Tips With Employees

by FordHarrison on

On June 30, 2017, the U.S. Court of Appeals for the Tenth Circuit ruled in Marlow v. The New Food Guy, Inc. d/b/a Relish Catering (Relish) that neither the Fair Labor Standards Act (FLSA) nor a Department of Labor (DOL)...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

11th Circuit Denies Private Federal Right of Action for Withheld Tips

The Court of Appeals for the 11th Circuit held earlier this week that a plaintiff who received at least the minimum wage and any overtime pay owed could not sue under the FLSA for withheld tips....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

Employers Must Comply with DOL's Updated Posting Requirements

by Holland & Knight LLP on

The Department of Labor (DOL) issued on July 27, 2016, regulations that require covered employers to update their Fair Labor Standards Act (FLSA) Minimum Wage posters and their federal Employee Polygraph Protection Act (EPPA)...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

Food and Beverage Law Update: August 2016

by Holland & Knight LLP on

When food and beverage companies think of their largest risks, data breaches have not historically come to mind, but this is changing because of reports in the past few months of major breaches by companies such as Noodles &...more

Employers Limited in Service Fees Deductions From Credit Card Tips

Restaurants and some other businesses that use employees partially compensated by tips can claim a tip credit toward the Fair Labor Standards Act’s minimum wage requirements. However, the FLSA strictly regulates the servers’...more

Fifth Circuit Declines to Broaden Permitted Deduction of Credit Card Fees from Tips

by Littler on

The U.S. Court of Appeals for the Fifth Circuit concluded on June 14, 2016 that an employer may not deduct more than the actual credit card fees associated with liquidated credit card tips for employees without compromising...more

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