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Fifth Circuit Court of Appeals Nixes DOL's Tip Rule

Real World Impact:  The Fifth Circuit Court of Appeals' recent decision vacating the U.S. Department of Labor’s (DOL) rule regarding tipped employees means the rule is no longer in effect nationwide. This is a major victory...more

Restaurant Industry Alert: DOL Publishes Final Rule for Tipped Employees

On October 29, 2021, the U.S. Department of Labor (DOL) published its Final Rule related to tipped employees. It is effective December 28, 2021. DOL had issued a Notice of Proposed Rulemaking (NPRM) on June 21, 2021,...more

Restaurant Industry Alert: DOL Issues Final Rule Modifying Tip Sharing

On September 23, 2021, the U.S. Department of Labor (DOL) issued its latest rule related to tip pooling. The rule modifies and clarifies aspects of a rule previously issued by the Trump administration. ...more

Department of Labor Relaxes Rules for Tipped Employees

The Department of Labor’s Wage and Hour Division (WHD) has announced it will no longer apply the “80/20 rule” to tipped employees, and will no longer require employers to pay the full minimum wage for time spent by a tipped...more

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

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

Ninth Circuit Creates More Uncertainty in 80/20 Rule for Tipped Workers

On February 16, 2018, the United States Court of Appeals for the Ninth Circuit granted en banc review of Marsh v. J. Alexander’s LLC, 869 F.3d 1108, creating a new layer of uncertainty for hospitality employers....more

DOL's Proposed Rule Change to Give Employers Increased Flexibility to Distribute or Retain Tips from Employees Earning the Full...

On December 5, 2017, the U.S. Department of Labor (DOL) published its Notice of Proposed Rulemaking (NPRM) to reverse the Obama Administration’s tip rule prohibiting the distribution of tips to anyone other than the...more

The Ninth Circuit Affords No Deference to the DOL's 80/20 Tip-Credit Guidance—Creating a Circuit Split and Potentially Setting Up...

On September 6, in Marsh v. J. Alexander’s LLC, the Ninth Circuit Court of Appeals refused to give deference to the U.S. Department of Labor’s (“DOL”) tip-credit guidance under the Fair Labor Standards Act (“FLSA”). The...more

Tenth Circuit Rules Employer That Pays More Than Minimum Wage Does Not Have to Share Customers' Tips With Employees

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

NLRB Moves Toward New Standard to Hold Franchisors Are Joint Employers of Their Franchisees' Employees

Over the last two years fast-food workers have engaged in walkouts and other activities protesting their wages and seeking an increase to $15/hr. Numerous unfair labor practice charges have been filed with the National Labor...more

Consumer Financial Protection Bureau Issues Bulletin About Federal Regulation Of Payroll Cards

Many employers are using or considering using payroll cards to pay employees. A number of states have wage payment laws restricting employers' use of such cards. On September 12, 2013, the Consumer Financial Protection...more

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