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DOL Returns to Pre-2021 Dual Jobs Regulation for Tipped Employees

The U.S. Department of Labor (DOL) published a final rule on Dec. 17, 2024, restoring the pre-2021 language of the “dual jobs” regulation for tipped employees under the Fair Labor Standards Act (FLSA). This is a technical...more

Fifth Circuit Strikes Down DOL Tip Credit Rule: What It Means for Employers

In a long-awaited decision, the Department of Labor (DOL) regulation setting strict limits on the amount of time that tipped employees can spend performing work that does not directly generate tips has been struck down by the...more

Class Action Trends Report Winter 2023

In this issue of the Jackson Lewis Class Action Trends Report, we welcome the New Year and look back at the most significant developments affecting employment class and collective action litigation in 2022. We also look ahead...more

Has Lynn’s Food Grown Stale? Courts Increasingly Question Obligation to Review FLSA Settlements

For 40 years, the majority of federal courts have followed the holding of Lynn’s Food Stores, Inc. v. U.S., 679 F.2d 1350 (11th Cir. 1982), that FLSA claims may be settled only through approval by the U.S. Department of Labor...more

Supreme Court to Review Fifth Circuit’s Oil Rig “Day Rate” Case

In April 2020, a three-judge panel of the U.S. Court of Appeals for the Fifth Circuit held that paying an employee a set amount for each day that he works (i.e., on a “day rate” basis) does not satisfy the “salary basis”...more

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

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

Full Fifth Circuit To Hear FLSA “Day Rate” Case, Vacating Panel Opinion

In April 2020, a three-judge panel of the U.S. Court of Appeals for the Fifth Circuit held that paying an employee a set amount for each day he works (i.e. on a “day rate” basis) does not satisfy the “salary basis” component...more

Department Of Labor Issues Final Independent Contractor Rule

The Department of Labor’s (DOL) Wage and Hour Division has formally released a Final Rule defining “independent contractors” under the Fair Labor Standards Act (FLSA). The regulation provides that “an individual is an...more

DOL Withdraws ‘Retail Or Service Establishment’ Lists For Commissioned Employee Exemption Analysis

The U.S. Department of Labor (DOL) withdrew its interpretative rules setting forth the types of businesses either not qualifying, or only possibly qualifying, as “retail or service establishments” when determining whether a...more

Fifth Circuit Reverses Course, Concludes That “Day Rate” Pay Method Fails To Satisfy FLSA’s “Salary Basis” Test For Overtime...

Upon further reflection, a panel of the U.S. Court of Appeals for the Fifth Circuit has determined that paying an employee a set amount for each day that he works (i.e. on a “day rate” basis) does not satisfy the “salary...more

U.S. Department Of Labor Issues Final Rule On Calculating FLSA’s ‘Regular Rate’ Of Pay

The Department of Labor (DOL) has issued its Final Rule revising the regulations governing the calculation of the “regular rate” of pay, used to calculate overtime, under the Fair Labor Standards Act (FLSA). The Final Rule,...more

Department Of Labor Proposes Amended Regulations Concerning FLSA’s ‘Regular Rate’

The Department of Labor (DOL) has issued a Notice of Proposed Rulemaking (NPRM) to revise the regulations governing the calculation of the regular rate under the Fair Labor Standards Act (FLSA). The FLSA generally requires...more

Department Of Labor Releases New Proposed Overtime Rule, Sets Minimum Salary At $35,308

The U.S. Department of Labor (DOL) has issued a new proposed rule raising the annual minimum salary requirements for the Fair Labor Standards Act (FLSA) “white collar” overtime exemptions (executive, administrative, and...more

USDOL’s Wage & Hour Division Issues Internal Guidance Regarding Elimination Of The “80/20” Tip Credit Rule

Last November, the United States Department of Labor (USDOL) issued Opinion Letter FLSA2018-27, rescinding the so-called “80/20” Tip Credit Rule, a provision that during the last decade had spawned a cottage industry of...more

Labor Department Abandons ‘80/20’ Tip Credit Rule, To Relief Of Restaurant, Hospitality Industries

The Wage and Hour Division (WHD) of the Department of Labor (DOL) has reissued a 2009 opinion letter, effectively withdrawing enforcement guidance that made the tip credit under the Fair Labor Standards Act (FLSA) unavailable...more

DOL Eliminates Employer-Plaguing “80/20” Tip Credit Rule

The Department of Labor (“DOL”) today rescinded its prior guidance that made the tip credit unavailable to tipped employees who spend more than 20% of their time performing allegedly non-tip generating duties. The 20%...more

U.S. Department Of Labor Announces Creation Of New Wage And Hour Compliance Outreach Office

Focusing on education to ensure compliance with the Fair Labor Standards Act, on August 28, 2018 Secretary of Labor Alexander Acosta announced the creation of the DOL’s new Office of Compliance Initiatives (OCI). That office...more

Department Of Labor Issues Additional FLSA Opinion Letters, Acknowledges New “Fair Reading” Standard For Overtime Exemptions

In furtherance of a practice reinstituted earlier this year, on August 28, 2018 the DOL’s Wage Hour Division (WHD) issued four new opinion letters covering FLSA topics. The current administration began that practice when, in...more

FLSA Amendment Bars Employers From Retaining Tips But Removes DOL Prohibition On Tip Sharing

An amendment to the Fair Labor Standards Act (FLSA) in the omnibus budget bill, “Consolidated Appropriations Act, 2018,” passed by Congress and signed by President Donald Trump on March 23, 2018, provides that an employer...more

Labor Department Proposes Reversing Obama-Era ‘Tip-Pooling’ Rule

Employers would be expressly permitted to require servers and other tip-earning employees to share their tips with employees working in the kitchen and other “back of the house” employee, but only when the employer does not...more

DOL’s “80/20” Tip Credit Rule Entitled To No Deference, Ninth Circuit Holds, Creating Circuit Split

Finding it wholly inconsistent with the statute and the regulation it purports to interpret, the Ninth Circuit has held invalid the United States Department of Labor’s “80/20” tip credit rule, or “20% Rule,” which limits the...more

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