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How Will Federal Bills Eliminating Tax on Tips and Overtime Impact Employers?

Tax breaks on overtime pay and tipped earnings passed the House on May 22, 2025, as part of the “One Big Beautiful Bill Act” (H.R. 1). The tax deductions provided under the sprawling reconciliation bill would be temporary,...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

Labor Department Publishes Restaurant, Retail Guidance on Compliance With PUMP Act

The Department of Labor (DOL) Wage and Hour Division (WHD) is in the process of publishing industry-specific guidance for compliance with the 2022 Providing Urgent Maternal Protections for Nursing Mothers Act (PUMP Act). The...more

Restaurant Associations’ Effort to Invalidate DOL’s ‘Dual Jobs’ Rule Rejected by Texas Federal Court

The “Dual Jobs” Final Rule, which regulates when employers may take a tip credit under the Fair Labor Standards Act (FLSA), is a valid and reasonable exercise of the Department of Labor’s (DOL) authority, a federal district...more

Labor Department Issues Final Rule On Tip Pooling Amendments, Elimination Of ‘20%’ Dual Jobs Rule

The U.S. Department of Labor (DOL) has issued its long-awaited Final Rule addressing who may share tips under the Fair Labor Standards Act (FLSA) and the circumstances under which employers may use a tip credit. The Final...more

Second Circuit To Decide Whether Court Approval Of FLSA Settlements Applies To Accepted Offers Of Judgment

Seeking to resolve a split among the district courts in the Second Circuit, the Court of Appeals has accepted an interlocutory appeal to decide whether, in resolving cases involving FLSA claims, offers of judgment under Rule...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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