News & Analysis as of


Ninth Circuit Agrees to Reconsider Tip Credit Case

For employers in the hospitality industry, tipping policies continue to pose significant litigation risks. A number of restaurant groups have faced recent class and collective action claims based on allegations that the...more

Food and Beverage Law Update: February 2018

by Holland & Knight LLP on

Deceptive Trade Practices - Meat Exporter Had No Duty Under FCA to Pay for Beef Inspection - In United States ex rel. Barrick v. Parker-Migliorini Int'l, LLC, 878 F. 3d 1224 (10th Cir. 2017), the court affirmed...more

Beltway Buzz - February, 2018 #2

Déjà Vu All Over Again? It is perhaps fitting that last Friday was Groundhog Day, as this week we relived the same government funding battle that we went through just a few weeks ago. Thankfully, because the shutdown card has...more

New Proposed Rule Allowing Tip Pooling Between Servers and Back of the House

On December 5, 2017, the US Department of Labor (“DOL”) issued a Notice of Proposed Rulemaking and requested comments by Monday February 5, 2018, regarding its proposal to rescind portions of its tip pooling regulations that...more

The Employment Law Authority - January/ February 2018

Between September 26, 2017, when for the first time in nearly a decade Republicans controlled the majority at the National Labor Relations Board (NLRB), and December 16, 2017, when Chairman Philip Miscimarra’s term expired...more

Window on Washington - Vol. 2, Issue 5

by Clark Hill PLC on

Another Shutdown? Congress needs to pass another short-term spending bill by Friday in order to keep the government open, but some House Republicans are against the plan for a fifth continuing resolution that would fund the...more

Beltway Buzz - February, 2018

“Okay, campers, rise and shine, and don’t forget your booties ‘cause it’s cooooold out there today.” Here is your Groundhog Day Beltway Buzz...more

New Jersey Tipped Employee Cash Minimum Wage Raise Under Consideration

by Jackson Lewis P.C. on

A bill to increase the hourly cash minimum wage paid to tipped employees in New Jersey has been introduced in the New Jersey State Assembly. Currently, New Jersey employers may pay a tipped employee a cash minimum wage of...more

Jackson Lewis Class Action Trends Report Winter 2018 Now Available

by Jackson Lewis P.C. on

Minimum wage: Tip traps Brewster’s Homestyle Bar & Grill is a favorite local chain, with eight popular restaurants in the city. The restaurants are constantly busy, with tables turning over at a steady clip. Consequently,...more

Weekly Update Newsletter - December 2017 #3

by PilieroMazza PLLC on

LABOR AND EMPLOYMENT - Department of Labor Seeks to Loosen Reins on Restaurant Industry By Rescinding Regulation of Certain Tip Pooling Practices - In 2014, the U.S. Department of Labor (“DOL”) Wage and Hour Division...more

Department of Labor Seeks to Loosen Reins on Restaurant Industry By Rescinding Regulation of Certain Tip Pooling Practices

by PilieroMazza PLLC on

Earlier this year, in “Restaurant Industry Headed To U.S. Supreme Court Over Tipping Practices”, I wrote about the Department of Labor’s (“DOL”) 2011 Regulation related to restaurant tip distribution practices and its journey...more

Window on Washington - Vol. 1, Issue 39

by Clark Hill PLC on

Tax Vote This Week: After Senators Corker and Rubio announced their support of the tax bill on Friday afternoon, both Chambers announced their plans to move forward with voting on the compromise tax package this week. The...more

Beltway Buzz - December, 2017 #3

Washington, D.C., in December is known for its holiday parties, where lobbyists and Hill denizens gather to stab food with toothpicks and knock back cheap—and sometimes not-so-cheap—drinks. Despite all this partying, people...more

The DOL Serves Up a Major Overhaul of its Tip-Sharing Regulations

by BakerHostetler on

Citing a “significant amount of private litigation,” recent changes in state wage laws, and “independent and serious concerns” of public policy, the U.S. Department of Labor (DOL) is proposing to rescind an Obama-era rule...more

Department of Labor Moves One Step Closer to Allowing Employers More Flexibility in Their Tip Pooling Practices

by Nexsen Pruet, PLLC on

The U.S. Department of Labor (DOL) published a notice of proposed rulemaking (NPRM) in the December 5, 2017 edition of the Federal Register, with a proposal to rescind its 2011 regulations on tip pooling. The NPRM appears to...more

Labor Department Proposes A Reversal Of Its Current Tip-Pooling Rules

by Foley & Lardner LLP on

On December 5, the Department of Labor published a Notice of Proposed Rulemaking to reverse its 2011 rule prohibiting employers from sharing tips obtained by service workers with non-tipped staff. The proposed rule would...more

Window on Washington - Vol. 1, Issue 38

by Clark Hill PLC on

One Shutdown Averted, Countdown Begins Again: With the government funded through December 22, House and Senate leadership are shifting their focus on how to structure a long-term spending deal that would include an increase...more

DOL’s Tip of the Hat to Back-of-the-House Employees: New NPRM to Rescind 2011 Regs

In response to significant pressure from the hospitality industry—specifically, the restaurant industry—as well as increasing litigation and changes to reduce or eliminate the use of tip credits at the state level, the U.S....more

DOL Proposes Repeal of Obama-Era Tip Credit Rule

Last week, the federal Department of Labor’s Wage and Hour Division proposed repealing a controversial regulation affecting employers in the hospitality industry. The regulation interpreted a provision of the Fair Labor...more

Explanation of the DOL's Proposed Rules on Tips

by Franczek Radelet P.C. on

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

Food & Beverage Litigation Update | December 2017#2

by Shook, Hardy & Bacon L.L.P. on

A state senator in Pennsylvania has reportedly announced plans to introduce a bill that would bar any municipality in the state from levying a tax on sugar-sweetened beverages (SSBs). If enacted, the bill could invalidate the...more

Are We at a “Tipping” Point for Wrongful Discharge Claims in Minnesota?

by Dorsey & Whitney LLP on

A bartender is told by his employer, in violation of state law, that he must share tips with other employees. He refuses to comply and is fired. The state law in question says he can sue for being required to share tips, but...more

Update: Tip Pooling by Restaurant Owners Remains in Flux

by Goulston & Storrs PC on

This past April, we reported on a recent Ninth Circuit ruling which upheld a 2011 Department of Labor (“DOL”) rule that prohibits restaurants from instituting tip-pooling arrangements that include both front-of-house staff...more

DOL's Proposed Rule Change to Give Employers Increased Flexibility to Distribute or Retain Tips from Employees Earning the Full...

by FordHarrison on

On December 5, 2017, the U.S. Department of Labor (DOL) published its Notice of Proposed Rulemaking (NPRM) to reverse the Obama Administration’s tip rule prohibiting the distribution of tips to anyone other than the...more

Labor Department Proposes Reversing Obama-Era ‘Tip-Pooling’ Rule

by Jackson Lewis P.C. on

Employers would be expressly permitted to require servers and other tip-earning employees to share their tips with employees working in the kitchen and other “back of the house” employee, but only when the employer does not...more

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