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On December 3, 2024, the Department of Labor (DOL) introduced a Final Rule to end an employer’s ability to pay individuals with disabilities subminimum wages under federal law....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
On June 23, 2021, the U.S. Department of Labor published a Notice of Proposed Rulemaking to limit the amount of non-tip producing work that a tipped employee can perform when an employee is taking a tip credit. ...more
The Department of Labor (DOL) has issued a new Notice of Proposed Rulemaking (NPRM), again seeking to regulate the circumstances under which an employer may pay a tipped employee a direct wage below the minimum wage. The NPRM...more
On June 21, 2021, the U.S. Department of Labor (“DOL”) introduced a proposed rule which, when effective, would impose increased limitations on when an employer can pay a tipped worker the “tipped minimum wage.” The proposed...more
Employers need to keep abreast of the ever-changing agency rules regarding whether a worker is an “independent contractor” or an “employee.” You might ask, “why does this matter to the government?” The answer is easy: many...more
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
On January 6, 2020, Governor Ned Lamont signed bipartisan legislation addressing rates of pay for restaurant workers. The Governor vetoed a previous version of the bill which would have applied retroactively and effectively...more
We remember when legislative and regulatory developments rarely occurred in December, but those days are behind us. A Reminder About New Year's Eve & New Year's Day Rate Increases: Many minimum wage, tipped and exempt...more
Under the current U.S. Department of Labor (DOL) regulations, if certain conditions are met, an employer may pay an employee who works fluctuating hours a fixed salary for all hours worked and then an additional half-time for...more
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
Last year, Congress amended the Fair Labor Standards Act to clarify circumstances under which employers can require employees who receive tips to share (or pool) those gratuities with other employees. Last Tuesday, the...more
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
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 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
Over a year after Congress amended the Fair Labor Standards Act (FLSA) to clarify tip ownership questions, the U.S. Department of Labor (DOL) finally published a Notice of Proposed Rulemaking on October 8, 2019, with proposed...more
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
The U.S. Department of Labor (“DOL”) has issued three sets of proposed regulations that significantly impact the Hospitality industry. ...more
Hoping to clarify when entities should be treated as “joint employers” under the FLSA, the Department of Labor (“DOL”) recently announced its intent to revise its so-called “joint employer” regulations under the Fair Labor...more
Earlier this week, the U.S. Department of Labor (DOL) announced its latest proposed rule to amend its existing regulations regarding joint employer arrangements under the Fair Labor Standards Act (FLSA). ...more
Labor and Employment - Jimmy John's Avoids Joint-Employer Finding in Worker Overtime Litigation - In In re: Jimmy John's Overtime Litigation, 2018 WL 3231273 (N.D. Ill. June 14, 2018), a federal district court ruled that...more
There’s been plenty of press regarding the U.S. Department of Labor’s proposed rules governing employer treatment of tips. Commentators are debating whether the proposed changes are a sensible return to the four corners of...more
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
The U.S. Department of Labor (DOL) has issued a proposed rule to rescind the Department’s position that employers must comply with tip-pooling requirements even when paying the full minimum wage. ...more
The U.S. Department of Labor (DOL) is proposing new rules that would provide some employers with more flexibility to count tips toward the federal minimum wage—particularly important for hospitality industry businesses such...more