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On December 18, 2024, the DOL issued opinion letter FLSA2024-02, reaffirming its position that managers and supervisors are prohibited from participating in tip pools under any circumstances....more
On election day Massachusetts voters were given the opportunity to vote on the Fair Wage for Tipped Workers Act, a ballot measure, referred to as Question 5, that would have gradually increased pay for tipped workers until it...more
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
Dear Littler, We operate sandwich shops in a couple of states. Although we have tables, we don’t have table service, and customers pick up food at the counter themselves to either take out or seat themselves at our...more
In the restaurant/service industry, gratuities (To Ensure Prompt Service or “tips”) motivate individuals to seek employment. Everywhere you turn, even if you did not receive any real service, workers are seeking tips....more
On March 23, 2023, Utah Governor Spencer Cox signed into law Senate Bill 73 (“SB 73”) expanding the group of employees eligible for tip pooling by allowing employers to include non-tipped employees in a bona fide tip pooling...more
Federal wage officials recently announced that two Florida restaurants with common ownership failed to properly calculate overtime pay when their employees worked at both locations in the same workweek – sending a stark...more
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
On June 28, 2022, Rhode Island Governor Daniel McKee signed new “tip protection” legislation. The statute prohibits employers of tipped employees from retaining employee tips, creates new requirements for tip pools, and sets...more
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
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
Beginning December 28, 2021, employers must pay tipped employees the full minimum wage for periods when non tip-producing work is performed for a substantial amount of time, in light of a new Department of Labor (DOL) Final...more
Tip Credits under the Fair Labor Standards Act - The Fair Labor Standards Act (“FLSA”) generally permits employers to pay tipped employees less than the minimum hourly wage, provided that the tips the employee receives are...more
Employers confronted with Fair Labor Standards Act (FLSA) claims as to their operations in Texas, Louisiana, or Mississippi should take note of a new decision by the United States District Court for the Northern District of...more
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
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
The U.S. Department of Labor published a final rule on September 23, 2021 clarifying several amendments to section 3(m) of the Fair Labor Standards Act (FLSA) that concern tip pooling. The final rule reestablishes the DOL’s...more
On September 23, 2021, the U.S. Department of Labor (DOL) published a final rule announcing when it will assess civil money penalties (CMPs) against employers who retain tips earned by their workers. Under the rule,...more
The old “80/20 rule” is back again for tipped workers under the latest proposed Final Rule issued by the Department of Labor (DOL) last month. Employers in the service industry, especially those employers who take a tip...more
The seemingly never-ending battle over interpretation of the Fair Labor Standards Act’s tip credit provision took another turn Monday. The U.S. Department of Labor’s Wage and Hour Division issued proposed rules that would set...more
Welcome to #WorkforceWednesday. This week, we look at updated safety and mask guidance and the top workplace regulations the Biden administration has rolled back. OSHA Updates COVID-19 Guidance In response to President...more
Days before the January 20, 2021, presidential inauguration, the U.S. Department of Labor (DOL), under the outgoing administration, issued a flurry of new regulations, rules and opinion letters that could significantly impact...more
Summary - On January 26, 2021, the U.S. Department of Labor (DOL) suspended a Final Rule on tipped employees that it previously had announced on December 22, 2020. The Final Rule clarified tip pooling for employees in the...more
On January 15, 2021, the U.S. Department of Labor issued two opinion letters addressing tip-related issues. The first, FLSA2021-4, addresses whether, and in what circumstances, a restaurant that takes a tip credit for its...more
Seyfarth Synopsis: Just before the holidays, the Department of Labor’s Wage-Hour Division issued its final pay regulations governing tipped employees. The final regulations, which were published December 22, 2020 and will...more