News & Analysis as of

Wages Department of Labor (DOL) Restaurant Industry

Jackson Lewis P.C.

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

Jackson Lewis P.C. on

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

FordHarrison

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

FordHarrison on

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

FordHarrison

Major Changes to New York Overtime and Minimum Wage Regulations to Take Effect on December 31, 2016

FordHarrison on

As of December 31, 2016, employers wishing to claim an administrative or executive exemption to New York State’s overtime regulations must raise each exempt employee’s salary threshold to $727.50-$825.00 per week, depending...more

FordHarrison

The Diminishing Tip Credit: Another Reason it is becoming Harder to Comply with Wage & Hour Laws in New York

FordHarrison on

Executive Summary: On January 30, 2015, the New York State Department of Labor's ("NYSDOL") Wage Board (the "Wage Board") voted to recommend a fifty percent increase in the minimum hourly rate for tipped workers, from $5.00...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

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

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

Proskauer Rose LLP

New York Court of Appeals Clarifies Important Questions about Tip-sharing Statute

Proskauer Rose LLP on

On June 26, 2013, New York's highest court for the first time weighed in and ruled on what types of employees are qualified to participate in tip-splitting or tip-pooling arrangements under the New York Labor Law, as well as...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

Akerman LLP - HR Defense

DOL Reports Widespread Wage And Hour Violations At Tampa Area Restaurants

Widespread violations of the Fair Labor Standards Act’s minimum wage and overtime provisions have been found during an ongoing enforcement initiative conducted by the Department of Labor Wage and Hour Division’s Tampa office....more

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