News & Analysis as of

Tips Fair Labor Standards Act

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

Here's a tip: Don't skim from employee tips

by Franczek Radelet P.C. on

Hospitality industry employers take note: If you claim a “tip credit” toward the minimum wage for any of your employees, you need to make sure that all tips are properly distributed to employees. A recent case from the Fifth...more

Ninth Circuit: FLSA's Tip-Pooling Restrictions Apply Regardless of Whether Employers Use Tip Credits

by Littler on

On February 23, 2016, the U.S. Court of Appeals for the Ninth Circuit in a 2-1 panel decision upheld the U.S. Department of Labor’s (DOL) 2011 revisions to 29 C.F.R. § 531.52 applying tip-pooling restrictions to employers...more

Ninth Circuit Approves DOL Rule that Restricts Tip Pooling

by FordHarrison on

Section 203(m) of the Fair Labor Standards Act (FLSA) allows employers of tipped employees to take a tip credit against the employer's minimum wage obligation if: (a) notice of the tip credit is provided, and (b) tipped...more

DOL May Enforce Rules Extending Tip Pooling Restrictions

by Conn Maciel Carey LLP on

Since 2010, the law has been in flux as to whether certain restaurant employees may or may not be allowed to participate in tip pools, particularly in states located in the jurisdiction of the U.S. Court of Appeals for the...more

Ninth Circuit Rules Tip Pooling Arrangements That Share Tips With Employees Who Do Not Normally Receive Tips Violate Federal Law

by Perkins Coie on

In a game-changing event, on February 23, 2016, the U.S. Court of Appeals for the Ninth Circuit (the court that covers nine western states, including Washington, Oregon and California) in a 2-1 decision ruled that it is a...more

Is Your Tip Pool Policy a Recipe for Trouble?

by Garvey Schubert Barer on

In a recent blog post, we highlighted the trend amongst hoteliers and restaurateurs toward adopting service charge models to meet the rise in state and local minimum wage requirements. Although “no-tip” and “service charge”...more

Chebotnikov v. LimoLink, Inc.: a Cautionary Tale Concerning the Use of Forum-Selection Clauses

At the end of last year, a federal court in Massachusetts found that a forum selection clause in an Iowa company’s standard form service-provider agreement did not apply to claims asserted under the Fair Labor Standards Act...more

UPDATE: Employee Tip Pooling – Don’t Say We Didn’t Warn You!

by McNees Wallace & Nurick LLC on

We have talked with you in the past about the risks of allowing employees to pool or share tips. This is a pretty common practice in the food service industry, but there can be concerns because of the complexity of compliance...more

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