News & Analysis as of

Tips Wages Restaurant Industry

Jackson Lewis P.C.

Restaurant’s Mandatory Service Charge Was Not a Tip and May Satisfy FLSA Wage Requirements, Eleventh Circuit Holds

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A Miami restaurant’s mandatory 18% service charge did not constitute a “tip” under the Fair Labor Standards Act (FLSA) and therefore was properly applied toward satisfying the FLSA’s employee wage requirements, the U.S. Court...more

Seyfarth Shaw LLP

Seyfarth Policy Matters Newsletter - January 2020

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Happy 2020! Welcome to the first edition of Policy Matters in this Presidential election year! Understandably, most of the Capitol’s attention has been focused on impeachment proceedings (or the lack thereof) and the conflict...more

Littler

New York Governor Orders Elimination of the Tip Credit for Employers Subject to the Minimum Wage Order for Miscellaneous...

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For over a year, New York State employers harbored concerns that New York State would enact rules that would eliminate their ability to apply a tip credit towards the wages of employees who earn tips. ...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

Stinson LLP

The Danger of Service Charges in Country Club Operations

Stinson LLP on

Country clubs and other private clubs have traditionally utilized service charges on food and beverage sales to supplement their revenue. In most cases, this supplemental revenue is used to pay higher wages to all employees...more

Bradley Arant Boult Cummings LLP

“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

Sherman & Howard L.L.C.

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

Foley & Lardner LLP

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

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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

Epstein Becker & Green

Take 5 Newsletter: Wage and Hour Update - October 9, 2013

Epstein Becker & Green on

- IRS Will Begin Taxing a Restaurant's Automatic Gratuities as Service Charges Many restaurants include automatic gratuities on the checks of guests with large parties to ensure that servers get fair tips. This method...more

BakerHostetler

Serving Up Trouble: IRS Ruling on Automatic Tips

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Restaurants and other employers in the hospitality industry are reminded that, as of January 2014, the Internal Revenue Service (IRS) will expect businesses to comply fully with its Revenue Ruling 2012-18. Among other things,...more

Genova Burns LLC

New York Court of Appeals Issues Opinion Addressing Tip Pool Arrangements

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The New York Court of Appeals recently issued an opinion addressing Starbucks’ tip pooling practices with regard to its shift supervisors and assistant store managers, which we discussed here....more

Gray Reed

Tips

Gray Reed on

Who, What, Why . . . Who does it apply to: Employers who take the “tip credit” against wages of some or all of their employees....more

BakerHostetler

Court to Applebee's Servers, Bartenders and Hosts: Washing Dishes and Taking Out the Trash May Be All in a Day's Work

BakerHostetler on

On May 13, 2013, in a decision favorable to the restaurant industry and companies that employ tipped workers, a district court in Indiana carved out a tip credit claim from a proposed wage and hour collective action brought...more

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