News & Analysis as of

Job Duties Tip Credit Fair Labor Standards Act (FLSA)

Amundsen Davis LLC

Federal Appeals Court Invalidates the U.S. Department of Labor’s 2021 Tip Credit Rule

Amundsen Davis LLC on

On August 23, 2024, in the case of Restaurant Law Center, et. al. v. U.S. Department of Labor, et. al., the U.S. Court of Appeals for the Fifth Circuit invalidated the U.S. Department of Labor’s (DOL) 2021 Tip Credit Rule...more

Whiteford

Employment Law Update: The Tip Credit is Back

Whiteford on

Hospitality employers take note – the Department of Labor’s (DOL) tip rule has been struck down. The tip credit is a provision of the Fair Labor Standards Act (“FLSA”) that allows employers to pay tipped employees a lower...more

Fox Rothschild LLP

5th Circuit Vacates DOL’s Federal 80/20/30 Tip Credit Rule

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The U.S. Court of Appeals for the 5th Circuit recently vacated the U.S. Department of Labor’s (DOL) latest provisions of its Tip Regulations Under the Fair Labor Standards Act, colloquially known as the 80/20/30 Rule through...more

Constangy, Brooks, Smith & Prophete, LLP

Fifth Circuit vacates DOL regs regarding tipped employees

On Friday, August 23, a three-judge panel of the U.S. Court of Appeals for the Fifth Circuit vacated a Final Rule issued by the U.S. Department of Labor that sought to restrict when employers could claim a “tip credit” under...more

Akerman LLP - HR Defense

DOL’s Final Rule on Tipped Employees Takes Effect December 28th

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

Burr & Forman

Department of Labor Releases Final Rule for Tipped Employees

Burr & Forman on

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

Constangy, Brooks, Smith & Prophete, LLP

DOL Issues Final Rule Changing FLSA Tip Credit Regulations

Wasting no time, the Wage and Hour Division of the U.S. Department of Labor published a Final Rule on Friday that will formally withdraw regulations on tip credits that were issued in the final days of the Trump...more

Amundsen Davis LLC

Here We Go Again: DOL Announces Final Rule Regarding Tipped Employees With Dual Jobs

Amundsen Davis LLC on

On October 29, 2021, the U.S. Department of Labor published its final rule regarding tipped employees with dual jobs (i.e., employees who perform both tipped and non-tipped work), rejecting the Trump-era approach to...more

Fisher Phillips

Hospitality Employers in for a Fright This Halloween: Labor Department Reinstitutes Notorious 80/20 Rule for Tipped Employees

Fisher Phillips on

Just in time to frighten hospitality employers, the U.S. Department of Labor just issued its final rule regarding tipped wages, reinstituting a worker-friendly rule that will cause challenges for most businesses utilizing the...more

Fox Rothschild LLP

Final Tip Credit Rules Released by Labor Department

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On October 29, 2021, the Wage and Hour Division of the U.S. Department of Labor (DOL) published the last provisions of its “Tip Regulations Under the Fair Labor Standards Act,” also known as the 2020 Final Tip Rule. As...more

Ogletree, Deakins, Nash, Smoak & Stewart,...

DOL’s Dual Jobs Final Rule: Will It Be a Horror Show for Employers?

On October 28, 2021, the U.S. Department of Labor (DOL) released a final rule that may cause many employers in the restaurant, hospitality, and service industries to rethink and/or end their use of tip credits under the...more

Jackson Lewis P.C.

Eleventh Circuit Refuses To Defer To DOL Opinion Letter Eliminating ‘20%’ Rule

Jackson Lewis P.C. on

In late 2020, the U.S. Department of Labor (DOL) issued a Tip Regulations Final Rule that, in part, sought to eliminate the so-called “80/20,” or “20%,” Rule under the Fair Labor Standards Act (FLSA). The 20% Rule has been...more

Burr & Forman

11th Circuit Court of Appeals Vacates Employer’s Tip Credit Summary Judgment Victory in Rafferty v. Denny’s

Burr & Forman on

The 11th Circuit clarified that employers, not employees, bear the burden of proving compliance with the 80-20 rule for employees subject to the tip credit under the FLSA....more

Jaburg Wilk

Tipping Points – DOL Issues New Opinions About Paying Tipped Employees

Jaburg Wilk on

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

Fisher Phillips

Labor Department Loosens Tip Pool Rules For Hospitality Employers

Fisher Phillips on

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

Littler

WPI Wage Watch: Minimum Wage, Tip, and Overtime Developments (January 2020 Edition)

Littler on

If January's minimum wage, tip, and overtime developments forecast what employers should expect throughout the remainder of the year, it could be a challenging 2020....more

Bricker Graydon LLP

Changes in store for tipped employees: DOL proposes host of new tip regulations

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On October 8, 2019, the U.S. Department of Labor (DOL) proposed changes to the Fair Labor Standards Act (FLSA) regulations governing the wages of tipped employees, specifically, tip credits and tip pools....more

FordHarrison

Department of Labor Deflates the 80/20 Rule & Inflates the Tip Pool

FordHarrison on

On Monday, October 7, 2019, the Department of Labor (DOL) proposed a new 80/20 rule and tip pooling regulation. First, the proposed regulation, if finalized, will permit employers to take a tip credit regardless of the...more

Epstein Becker & Green

U.S. DOL Announces Proposed New Rule on Tip Credits and Pooling

Epstein Becker & Green on

Rules relating to tip credit and pooling have resulted in significant debate among legislators, regulators, and the courts, leading to confusion, further litigation, and, in many cases, substantial liability or settlements...more

Seyfarth Shaw LLP

WHD Releases Proposed Rule on Tipped Employees

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Seyfarth Synopsis: The Department of Labor’s Wage & Hour Division announced its long-awaited proposed rule related to the FLSA’s tip provisions. The rule would implement statutory changes passed in March 2018; it also would...more

FordHarrison

U.S. Department of Labor’s New Guidance, Compliance Tool, and Leadership

FordHarrison on

February has been a busy month for the U.S. Department of Labor (“DOL”).  The Wage and Hour Division (“WHD”) published new guidance addressing tipped employees and payment of subminimum wages and released a new compliance...more

Fisher Phillips

USDOL Moves Forward With Eliminating 20% Rule

Fisher Phillips on

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

Holland & Hart - Employers' Lawyers

U.S. DOL Eases Restriction on Tipped Employees

...In a new opinion letter released November 8, 2018, the U.S. Department of Labor (DOL) decided to eliminate the “80/20 Rule” which had previously limited employers’ ability to take a “tip credit” toward their employees’...more

Franczek P.C.

What Duties Can A Server Perform Under the Tip Credit Rules? [Wage & Hour FAQ]

Franczek P.C. on

Q. We use the tip credit for servers who work in our restaurant. When service is slow, we ask our servers to pitch in with other jobs around the restaurant, like sweeping up the dining room and cleaning the restroom. ...more

Akerman LLP - HR Defense

A Tip from the Department of Labor: The 80/20 Rule Has Been Rescinded

Akerman LLP - HR Defense on

Employers are no longer barred from taking the tip credit for tipped employees who spend more than 20% of their time doing non-tipped activities, according to a new U.S. Department of Labor opinion letter doing away with the...more

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