News & Analysis as of

Tip-Pooling

Vedder Price

DOL Provides Further FLSA Guidance Regarding Manager and Supervisor Participation in Tip Pools

Vedder Price on

On January 14, 2025, the U.S. Department of Labor (DOL) issued another opinion letter (FLSA2025-1) reiterating its position that managers and supervisors are prohibited from participating in a tip pool under any circumstance....more

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

Low-Cost Meals, High-Cost FLSA Mistakes: Lessons From the DOL’s Fining of a Minnesota Pizza Restaurant for Wage and Hour Failures

In December 2024, the U.S. Department of Labor (DOL) fined a Minneapolis pizza restaurant for numerous wage and hour violations....more

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

DOL Clarifies That Managers and Supervisors Can’t Wear Two Hats When It Comes to Tips

On January 14, 2025, the U.S. Department of Labor (DOL) issued Opinion Letter FLSA2025-1 pertaining to managers’ participation in a tip pool at a “quick service restaurant.” ...more

Vedder Price

DOL Reaffirms That Managers And Supervisors May Not Participate In Tip Pools

Vedder Price on

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

Perkins Coie

Massachusetts Voters Retain Subminimum Wage for Tipped Employees

Perkins Coie on

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

Fisher Phillips

How Will the Election and Recent Legislative Trends Impact Tipped Wages? 4 Developments for Hospitality Employers to Watch

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There’s been a lot of buzz about tipped wages as Election Day approaches – and hospitality employers will want to track key proposals that may have a huge impact on pay practices. Former President Trump and Vice President...more

Fisher Phillips

Game-Changing SCOTUS Ruling Serves Up a Menu of Possibilities for Hospitality Employers: Your 4-Step Action Plan Post-Chevron

Fisher Phillips on

The Supreme Court’s recent landmark ruling that gives employers a powerful tool to fight back against regulatory overreach will have a broad impact on just about every area of workplace law – and every industry. We’re looking...more

Fisher Phillips

Massachusetts High Court Clears Way for Ending the Tip Credit: What Do Bay State Restaurant Operators Need to Know?

Fisher Phillips on

Massachusetts voters will decide this November whether employers may continue taking a “tip credit” and paying tipped employees below the state’s standard minimum wage. While restaurant industry representatives fought to keep...more

Fisher Phillips

Can Restaurant Hosts Share in the Tip Pool? Top 5 Questions for Employers that Take a Tip Credit

Fisher Phillips on

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

Parker Poe Adams & Bernstein LLP

Eleventh Circuit Confirms That Service Charges Are Not FLSA Tips

The tip wars between hospitality employers and employees continue unabated. Numerous lawsuits contend that restaurants and other employers wrongfully retain or require sharing of customer gratuities, as well as violate Fair...more

Tonkon Torp LLP

The Service Industry Must Revisit Tipping Policies or Prepare to Pay Up

Tonkon Torp LLP on

Recent news of six-digit demands and lawsuits filed by the Department of Labor against multiple Oregon-based institutional restaurant chains has local businesses across the service industry wondering: “Are we tipping our...more

Fisher Phillips

Jump On In: Five Steps to Set Up a Lawful Tip Pool in Kentucky

Fisher Phillips on

Tipping is everywhere: the coffee shop, the florist, and even the dry cleaner! This booming tip culture has led many employers that may not have traditionally established a tip pool to consider using one to ease the impact of...more

Parker Poe Adams & Bernstein LLP

Labor Department Continues to Pursue Restaurant Owners for Illegal Tip Pools

Under the Fair Labor Standards Act (FLSA), business owners and managers may not share in their servers’ tips. In recent weeks, the U.S. Department of Labor’s Wage and Hour Division announced recoveries against two restaurants...more

Fisher Phillips

Are You Properly Paying Your Bell Staff? 5 Top Questions for Hotels that Take a Tip Credit

Fisher Phillips on

Hotel staff often include a mix of tipped and non-tipped jobs, but following wage and hour rules isn’t always easy, particularly if employees perform a variety of tasks. Some workers — such as servers and bartenders — may...more

Littler

Dear Littler: How Do Restaurants Without Table Service Handle Tips?

Littler on

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

CDF Labor Law LLP

CDF Wage and Hour Task Force Monthly Tips - “Tips on Tips”

CDF Labor Law LLP on

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

Fisher Phillips

Can You Include Sushi Chefs — and Other Unique Positions — in Your Tip Pool? 5 Key Questions for Restaurateurs to Review

Fisher Phillips on

Do you utilize a tip pool in your restaurant? If so, you are likely aware of the various rules on maintaining a valid, lawful tip pool under the federal Fair Labor Standards Act (FLSA) and applicable state laws. You surely...more

Epstein Becker & Green

Utah Expands Tip Pooling to Include Non-Tipped Employees

Epstein Becker & Green on

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

Jackson Lewis P.C.

Washington Releases Draft Policy on Tips, Gratuities, and Service Charges

Jackson Lewis P.C. on

The Washington State Department of Labor & Industries (L&I) released a draft administrative policy regarding tips, gratuities, and service charge requirements for employers. The new policy, titled “Tip, Gratuity, and Service...more

Fisher Phillips

Restaurant Owner Learns Dangers of Comingling Employees Between Locations – 4 Lessons for Hospitality Employers

Fisher Phillips on

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

Kohrman Jackson & Krantz LLP

The DOs and DON’Ts of the DOL’s New Tip Credit Rules

Employees in the service industry, such as bartenders and waitstaff, have come to rely on tips as a part of their hourly wages. In fact, most states specifically allow restaurants and bars to pay workers less than minimum...more

Fisher Phillips

The Road to Hell is Paved with Good Intentions: Top 7 Wage and Hour Mistakes for Hospitality Employers to Avoid

Fisher Phillips on

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

Steptoe & Johnson PLLC

Pennsylvania Updated Minimum Wage Regulations Take Effect This Friday

By Friday, August 5, Pennsylvania employers must ensure their wage and hour practices comply with the updated Pennsylvania minimum wage regulations. The new regulations address compensation calculations for tipped employees...more

Jackson Lewis P.C.

Pennsylvania’s New Requirements for Tipped and Salaried Employees: Common Questions

Jackson Lewis P.C. on

The Pennsylvania Department of Labor and Industry has implemented new regulations under the Pennsylvania Minimum Wage Act (PMWA) that go into effect on August 5, 2022. The regulations make a number of important changes for...more

Stevens & Lee

Pennsylvania Tipped Worker and Overtime Rules Take Effect August 5, 2022

Stevens & Lee on

On August 5, 2022, updated rules affecting tipped workers and salaried workers who work a fluctuating work schedule will go into effect. Below is a summary of these regulations:... ...more

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