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20% Rule Fair Labor Standards Act (FLSA)

Seyfarth Shaw LLP

A Zombie Tip Credit Rule: District Court Tries To Bring The 80/20 Guidance Back From The Dead

Seyfarth Shaw LLP on

Seyfarth Synopsis: Even though the DOL abandoned its 20% tip credit rule in November 2018, one federal district judge has refused to defer to the agency, opting to defer to the old guidance instead....more

Polsinelli

Back from the Dead: The Revival of the 80/20 Rule

Polsinelli on

Recently, we discussed the U.S. Department of Labor’s (“DOLs”) rescission of the 80/20 rule.  Unfortunately, less than two months after the DOL’s rescission, the U.S. District Court for the Western District of Missouri...more

Fisher Phillips

Why Are Courts Deferring to USDOL's "20% Rule" Restricting the FLSA's Tip Credit?

Fisher Phillips on

In a case that refuses to go away, the Ninth Circuit, now sitting en banc, has held that the plaintiff in Marsh v. J. Alexander's stated an FLSA minimum wage claim based on the USDOL's so-called "20% Rule" limiting a tipped...more

Fisher Phillips

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

Fisher Phillips on

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

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