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The Department of Labor (“DOL”) today rescinded its prior guidance that made the tip credit unavailable to tipped employees who spend more than 20% of their time performing allegedly non-tip generating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

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

New York Rings In New Year With Wage & Hour Presents: A Preview Of Upcoming Changes

While the federal minimum wage for non-exempt employees has remained unchanged at $7.25 per hour since 2009, and the federal salary level for exempt employees has been stymied in litigation and rulemaking since 2014, New York...more

Governor Cuomo Contemplating Elimination Of Tip Credit

Employers in New York currently are permitted to pay tipped workers a direct cash wage that is below the State minimum wage and take a “credit” for some of the tips received by employees to satisfy the difference between the...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

2018 Minimum Wage Rate Increases: Are You Ready?

The federal minimum wage has remained stagnant at $7.25 an hour since 2009. In the absence of an increase to the federal minimum wage, an increasing number of states, cities, and other municipalities have enacted statutes...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

Hair Today, Gone Tomorrow: Seventh Circuit Rejects Claim That Cosmetology Trainees Were Employees

Former cosmetology students are not employees entitled to pay under the FLSA and various state laws, the Seventh Circuit holds, rejecting the Department of Labor’s six-factor test but declining to adopt any bright-line test....more

New York Issues Final Minimum Wage Regulations and Related FAQs

The New York State Department of Labor has adopted regulations implementing increases to the state minimum wage, identified required salary levels for exclusions from overtime pay for executive and administrative employees,...more

Employers Prepare for Patchwork of Minimum Wage Rates for 2017

With the federal minimum wage stalled at $7.25 an hour since 2009, states, counties, and local governments have increasingly stepped in and passed legislation raising the minimum wage above the federal level. Because federal...more

Wage Orders Likely Pose Compliance Issues for New York Employers

For New York employers, many wage-and-hour obligations are not set forth in the statute. Rather, they are outlined in Wage Orders promulgated by the New York State Department of Labor. The New York DOL has published proposed...more

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