News & Analysis as of

Resorts & Restaurants Tipped Employees

Littler

New York Governor Orders Elimination of the Tip Credit for Employers Subject to the Minimum Wage Order for Miscellaneous...

Littler on

For over a year, New York State employers harbored concerns that New York State would enact rules that would eliminate their ability to apply a tip credit towards the wages of employees who earn tips. ...more

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

DOL Reissues Opinion Letter Eliminating the 80/20 Rule

On November 8, 2018, the Department of Labor (DOL) gave hospitality employers good news when it retracted its “80/20 rule,” which prevented employers from taking the tip credit when tipped employees spent more than 20 percent...more

Lowndes

Florida's Minimum Wage Rises to $8.10 in 2017

Lowndes on

Florida’s minimum wage will increase effective January 1, 2017 as follows: - Florida’s minimum wage will increase by five cents from $8.05 to $8.10 per hour. - Florida’s minimum wage for tipped employees will...more

FordHarrison

Ninth Circuit Approves DOL Rule that Restricts Tip Pooling

FordHarrison on

Section 203(m) of the Fair Labor Standards Act (FLSA) allows employers of tipped employees to take a tip credit against the employer's minimum wage obligation if: (a) notice of the tip credit is provided, and (b) tipped...more

Davis Wright Tremaine LLP

Ninth Circuit Ices Back-of-House Tip Pools

The Ninth Circuit Court of Appeals has upheld U.S. Department of Labor regulations invalidating tip-pooling arrangements that include kitchen staff and other employees who are not customarily tipped (often referred to as...more

Seyfarth Shaw LLP

Tip-Toeing Around Class Actions: Can a “No Tipping” Policy End Wage and Hour Litigation in the Hospitality Industry?

Seyfarth Shaw LLP on

Joining a budding national trend, renowned restaurateur Danny Meyer of Union Square Hospitality Group last week announced that he will eliminate formal tipping at his restaurants starting in 2016. Meyer stated that the new...more

Littler

Fifth Circuit Rules on Tip Pooling

Littler on

In Montano v. Montrose Restaurant Associates, Inc., the U.S. Court of Appeals for the Fifth Circuit was presented with what may seem like an easy issue:  does including a “coffeeman” in a tip pool invalidate the tip credit? ...more

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

The Federal Minimum Wage for Tipped Employees—Is a Raise in Store?

President Obama has made increasing the federal minimum wage a priority for the administration due in no small part to sustained union efforts over the past few years—including “worker center” protests and campaigns aimed at...more

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