News & Analysis as of

Tip-Pooling

Bricker Graydon Wyatt LLP

Be Mindful of Tipping Rules Under the Fair Labor Standards Act

Two class actions were filed in 2024 against Jeff Ruby Culinary (“JRC”) for violations of the Fair Labor Standards Act (‘FLSA”). The classes were made up of over 700 former employees and the claims asserted that JRC had...more

Fisher Phillips

Tip Credit Tips Ahead of the Summer Season: 4 Reminders + Steps to Prepare

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With warmer weather and school breaks just around the corner, businesses are starting to ramp up hiring for the summer season. For hotels, restaurants, and other hospitality businesses, this also means navigating an...more

Clark Hill PLC

The Learned Concierge - March 2026, Vol. 28

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Welcome to your monthly legal insights on the trends impacting the Retail, Hospitality, and Food & Beverage Industries....more

Foley & Lardner LLP

Failing to Meet Tip-Pooling Requirements Creates Huge Financial Pitfall

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Share on Twitter Print Share by Email Share Back to top The proliferation of wage and hour class actions throughout the United States over the past twenty years is well-documented. A recent federal court decision involving a...more

Clark Hill PLC

Colorado Federal Court Rules Workers Don’t Qualify for Tip Pools When Restaurant Is Closed

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In Green v. Perry’s Restaurants Ltd., No. 21-cv-0023-WJM-NRN (D. Colo. Feb. 3, 2026), the federal court in Colorado delivered a significant victory for tipped employees and restaurant workers, ruling that Perry’s Steakhouse...more

Conn Maciel Carey LLP

Reading the Tea Leaves: What are the Wage and Hour Division’s Priorities in Year Two of Trump 2.0

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With a little more than a year of the Second Trump Administration in the books, we are getting a better idea of the President’s priorities, including at the U.S. DOL’s Wage and Hour Division (“WHD”). Rulemaking plans...more

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

New Year, New Laws: 2026 Updates in Canadian Employment Standards

On January 1, 2026, a number of important legislative changes came into effect in several provinces across Canada. These changes affect employee rights and employer obligations, and may require updates to an employer’s...more

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

Year-End Tips on Tips for the Hospitality Industry

The U.S. Congress made waves this year after enacting the One Big Beautiful Bill Act (OBBB Act), which provides no tax on tips (or overtime) through 2028. ...more

Hinshaw & Culbertson - Employment Law...

Tip Theft…No, No, No [Day 10 of 12 Days of California Labor and Employment: 2025 Year in Review]

The end of something is always the beginning of something else. That always rings true for years’ end and new employment laws. It is time, once again, for all employers to sit down, buckle up, and get ready for the 2026...more

Ervin Cohen & Jessup LLP

New Enforcement Law Requires Review of Tip Handling

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For California employers, particularly those in the hospitality and service industries where tipping is customary, remaining compliant with all wage and hour laws has always been paramount. However, a significant development...more

Parker Poe Adams & Bernstein LLP

What Employers Should Know About New DOL Interpretations of FMLA and Fair Labor Standards Act

On September 30, 2025, the U.S. Department of Labor’s Wage and Hour Division released four new opinion letters interpreting the Fair Labor Standards Act (FLSA) and the Family and Medical Leave Act (FMLA). ...more

Akerman LLP

Recent DOL Opinion Letter on Tip Pooling

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I recently received a U.S. Department of Labor opinion letter addressing a client inquiry about whether an oyster shucker working in the “front of the house” may participate in a tip pool under the Fair Labor Standards Act....more

Freeman Mathis & Gary

Third Circuit clarifies FLSA settlements: Employers can include FLSA releases in opt-out class actions

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In a closely watched decision at the intersection of wage-and-hour law and class procedure, the U.S. Court of Appeals for the Third Circuit has resolved a question that had long divided district courts: can a Rule 23 opt-out...more

Fox Rothschild LLP

Three CA Handbook Updates for 2026

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It’s time to update those handbooks for 2026 and while there are numerous new laws California employers must comply with, not all of them are, what I call, “handbook worthy.” Here are three changes I’m making to this year’s...more

Perkins Coie

DOL Issues Four New Opinion Letters: Key Takeaways for Employers in Hospitality, Public Safety, and Beyond

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The U.S. Department of Labor’s Wage and Hour Division (DOL) issued four official guidance letters (“opinion letters”) on September 30, 2025. These letters explain how federal wage-and-hour and leave laws apply in common...more

McGuireWoods LLP

Department of Labor Issues Four Opinion Letters on FLSA and FMLA

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On Sept. 30, 2025, the U.S. Department of Labor issued four opinion letters on a range of issues under the Fair Labor Standards Act (FLSA) and Family and Medical Leave Act (FMLA). Three opinion letters offer guidance on...more

Womble Bond Dickinson

Shuckers in the Pool: DOL Clarifies Tip-Pooling Rules for the Hospitality Industry

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The Department of Labor’s (DOL) September 30, 2025 Opinion Letter FLSA2025-03 brings welcome clarity for restaurants and hospitality employers navigating complex tip pooling requirements. By way of background, a DOL...more

Phelps Dunbar

New Oyster Cult: Giving (Tip) Credit to the Frontman

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DOL’s latest opinion letter cracks open tip pooling rules for customer-facing oyster shuckers. The world of tip pooling under the Fair Labor Standards Act (FLSA) is a perennial source of confusion and litigation for...more

Jackson Lewis P.C.

DOL’s First Batch of Trump 2.0 Opinion Letters Address Tip Pools, Emergency Pay + Joint Employment

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The U.S. Department of Labor Wage and Hour Division issued three new opinion letters interpreting the Fair Labor Standards Act (FLSA) on Sept. 30, 2025. The letters are the first of the new administration and clarify...more

Constangy, Brooks, Smith & Prophete, LLP

Wage-hour opinion letters address tip pooling, emergency pay, and FLSA and FMLA compliance

On September 30, before the federal government shutdown, the Wage and Hour Division of the U.S. Department of Labor issued four opinion letters on issues of interest to employers. All four of the letters were written by...more

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

DOL Not Shucking Tradition: Recent Opinion Letter on Tip Pool Inclusion

One day before the government shutdown, on September 30, 2025, the U.S. Department of Labor (DOL) issued four opinion letters, including FLSA2025-03, which condones including front-of-house oyster shuckers in traditional tip...more

Littler

Department of Labor Issues Opinion Letter Regarding Employees Who Customarily and Regularly Receive Tips

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On September 30, 2025, the U.S. Department of Labor (DOL) issued an opinion letter reaffirming its longstanding approach to determining which employees “customarily and regularly” receive tips for purposes of compliance with...more

Fisher Phillips

From Joint Employers to Oyster Shuckers: DOL Issues Opinion Letters on Hospitality Sector Wage Issues

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Is an oyster shucker who works in the “front of the house” allowed to share in the tip pool? Are a hotel restaurant and related members club joint employers for overtime purposes? The US Department of Labor (DOL) recently...more

Conn Maciel Carey LLP

Can Service Charges be Distributed to Independent Contractors?

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These days, restaurant bills are more confusing than ever. Even as an employment attorney in the hospitality industry, I often find myself scratching my head at the various additional service charges, automatic gratuity...more

Pillsbury Winthrop Shaw Pittman LLP

Navigating Tip and Overtime Deductions Under the OBBBA: What Employers Need to Know Now

New federal tip and overtime deductions effective in 2025 require employers to reassess payroll, reporting and compliance practices across jurisdictions. The OBBBA introduces new federal deductions for qualified tips and...more

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