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How Will the Election and Recent Legislative Trends Impact Tipped Wages? 4 Developments for Hospitality Employers to Watch

There’s been a lot of buzz about tipped wages as Election Day approaches – and hospitality employers will want to track key proposals that may have a huge impact on pay practices. Former President Trump and Vice President...more

Appeals Court Strikes Down Onerous 80/20/30 Tip Credit Rule: 7 Things Hospitality Employers Should Know About This Win

A federal appeals court just delivered some good news to hospitality employers by blocking the Department of Labor’s infamous 80/20/30 rule, providing immediate relief to employers around the country by vacating the...more

Can Restaurant Hosts Share in the Tip Pool? Top 5 Questions for Employers that Take a Tip Credit

Many restaurants utilize tip pools to encourage teamwork, consistency, and customer-focused service – but you may be confused about who can and can’t participate in the pool. You feel confident that your servers and...more

Are You Properly Paying Your Bell Staff? 5 Top Questions for Hotels that Take a Tip Credit

Hotel staff often include a mix of tipped and non-tipped jobs, but following wage and hour rules isn’t always easy, particularly if employees perform a variety of tasks. Some workers — such as servers and bartenders — may...more

Labor Department’s “New” Tip Credit Rule is Here to Stay…For Now: A 10-Step Plan for Hospitality Employers

A federal court just refused to block the U.S. Department of Labor’s infamous 80/20 rule, which applies to employers that take the tip credit toward their minimum wage obligation under federal wage and hour law – which means...more

Can You Include Sushi Chefs — and Other Unique Positions — in Your Tip Pool? 5 Key Questions for Restaurateurs to Review

Do you utilize a tip pool in your restaurant? If so, you are likely aware of the various rules on maintaining a valid, lawful tip pool under the federal Fair Labor Standards Act (FLSA) and applicable state laws. You surely...more

Tip-Credit Turmoil Continues: USDOL Releases Guidance That Continues Trend of Trimming Employer Practices

More than a year after the US Department of Labor announced the return of the time-keeping nightmare that is the 80/20 rule with new tweaks that encourage even more litigation, the agency just released new guidance that...more

The Road to Hell is Paved with Good Intentions: Top 7 Wage and Hour Mistakes for Hospitality Employers to Avoid

Employers in the hospitality industry have been through it all in recent years – from the devastation of the pandemic to ongoing labor shortages to an impending recession. These challenges and dramatic changes have surely...more

Food Delivery Apps Can Be Both a Blessing and a Curse for Restaurants: 5 Tips to Avoid a Tip Credit Landmine

Restaurants’ reliance on food delivery apps soared during the pandemic because they provide a convenient way for customers to order from local restaurants and an easy solution for processing restaurant payments and sourcing...more

4 Reminders for Employers After a Texas BBQ Chain’s $900K Tip Pooling Mistake

Employers in the restaurant and hospitality industries know it’s a common practice to ask workers to share gratuities. Tip pools can promote teamwork and a better customer experience – but they can also land you in hot water...more

Service Charges Could Be Solution to Tip Credit Challenges: An Employer’s 6-Step Guide

Hospitality employers who utilize the “tip credit” under federal wage and hour law may feel as if they operate with a bullseye on their backs given the multi-prong assault underway against the practice. Not only are you in...more

Is Your Tip Credit A Ticking Time Bomb? An Employer’s 10-Step Wage and Hour Action Plan for 2022

With the government’s final rules on the tips provisions of federal wage and hour law becoming effective just weeks ago, employers will be challenged with ensuring they have a plan to address the rules’ impact on their...more

Feds Now Have Broader Authority to Assess Monetary Penalties for Tip Violations

Federal labor officials just finalized a rule that broadens their ability to assess monetary fines against those business that commit wage and hour violations with regards to tip payments, a development several months in the...more

New Labor Department Proposal Would Resurrect Troublesome 80/20 Rule for Tipped Workers

The U.S. Department of Labor just issued a Notice of Proposed Rulemaking that will affect most businesses with tipped employees if the business utilizes the tip-credit method of payment. The thrust of this proposal is the...more

Labor Department Loosens Tip Pool Rules For Hospitality Employers

The U.S. Department of Labor issued a long-awaited final rule right before Christmas addressing the issue of tipped employees. The final rule, released on December 22 but not effective until February 20, 2021, provides...more

USDOL Issues Proposed Changes to the Tip Credit Regulations

Employers that utilize the “tip credit” in the federal Fair Labor Standards Act (“FLSA”), or whose employees receive tips, should carefully consider regulatory changes that were proposed by USDOL today. While many of the...more

USDOL Moves Forward With Eliminating 20% Rule

On February 15, the U.S. Department of Labor struck another nail into the coffin of the infamous “20% Rule,” the agency’s prior enforcement position which purported to limit an employer’s ability to take the federal Fair...more

USDOL Cleans Up Its “20% Rule” Mess

The United States Department of Labor (USDOL) issued four opinion letters yesterday in which it construed issues arising under the federal Fair Labor Standards Act (“FLSA”). The most significant of these letters, FLSA2018-27,...more

How USDOL’s So-Called "20% Rule" Has Obscured the FLSA's Definition of a "Tipped Employee"

Section 3(m) of the federal Fair Labor Standards Act ("FLSA") permits an employer to take the "tip credit" for "tipped employees". Certain requirements must be met though, including that the employee must earn a sufficient...more

Here's a Tip: Tread Carefully

As we previously wrote, Congress has now amended Section 3(m) of the federal Fair Labor Standards Act (FLSA) to prohibit an employer from "keep[ing] tips received by its employees for any purpose, including allowing managers...more

USDOL Seeks To Narrow Tip-Retention Prohibition

We have previously written about the U.S. Department of Labor's position adopted in 2011 saying that an employer may not retain any of an employee's tips even if management: • Takes no tip-credit under the federal Fair...more

Tipping Point Of Confusion: Contradictions Abound In Tip Credit Rules

Legal issues surrounding tip credits have been in the spotlight throughout much of 2017, from significant court decisions to announcements by the U.S. Department of Labor (USDOL). But rather than setting forth clear rules,...more

Valet Driver's FLSA Tip Claim Fails

In a welcome decision for employers, the Eleventh Circuit U.S. Court of Appeals (having jurisdiction over Alabama, Florida, and Georgia) recently ruled that a tipped employee for whom no federal Fair Labor Standards Act "tip...more

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