The United States Supreme Court recently denied review of an Eighth Circuit decision holding that employers must pay the federal minimum wage to tipped employees during those times when the employees performed related non-tipped "preparation and maintenance work," as long as the time spent performing related non-tipped work exceeded 20% of their workday. The Supreme Court's decision to decline certiorari could have a significant impact on the hospitality industry.

In another ongoing case to watch, a federal district court in Tennessee granted conditional class certification to a class of bartenders, barbacks, and waitresses who claim they were required to share tips with security guards. This case again raises the issue of which classes of employees are "tipped employees" who can lawfully share in tips.

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