News & Analysis as of

Tip-Pooling

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

USDOL Seeks To Narrow Tip-Retention Prohibition

by Fisher Phillips on

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

DOL Issues Proposed Rule to Rescind 2011 Regulations that Impose Tip-Sharing Restrictions on Employers that Pay the Full Federal...

by Littler on

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 DOL Proposes to Cut Tip-Pooling Restrictions

by Ballard Spahr LLP on

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

Tip-Pooling Expansion on the Horizon

The U.S. Department of Labor (DOL) has proposed to roll back regulations enacted in 2011 that limited tip-pooling arrangements under the Fair Labor Standards Act (FLSA). The proposed rule was published December 5 in the...more

DOL Issues Proposed Rule to Rescind 2011 Regulations that Impose Tip-Sharing Restrictions on Employers that Pay the Full Federal...

by Littler on

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

Department Of Labor’s Wage And Hour Division Proposes To Nix Unpopular Tip Pooling Rule

by Seyfarth Shaw LLP on

Seyfarth Synopsis: On Monday, the DOL issued a Notice of Proposed Rulemaking announcing rescission of a rule that regulates tip pooling by employers who do not take the tip credit. The DOL has issued a Notice of Proposed...more

DOL Proposing New Tip Credit Regulations

by Sherman & Howard L.L.C. on

On December 4, 2017, the U. S. Department of Labor (“DOL”) issued a Notice of Proposed Rulemaking regarding the tip credit regulations under the Fair Labor Standards Act. The proposed new regulation will be published today,...more

Tipping Point Of Confusion: Contradictions Abound In Tip Credit Rules

by Fisher Phillips on

Legal issues surrounding tip credits have been in the spotlight throughout much of 2017, from significant court decisions to announcements by the U.S. Department of Labor (USDOL). But rather than setting forth clear rules,...more

How Is 2017 Like 1947?

by Fisher Phillips on

Once upon a time, a seriously-alarmed legislature grew concerned that wage-hour claims and litigation had gotten out-of-hand. A series of court decisions had, among other things, broadly expanded the scope of what counted...more

October 2017: The Top 11 Labor And Employment Law Stories

by Fisher Phillips on

It’s hard to keep up with all the recent changes to labor and employment law. While the law always seems to evolve at a rapid pace, there have been an unprecedented number of changes each month in 2017. October was no...more

Just A Tip: DOL One Step Closer To Rescinding Tip Pooling Regulation

by Akerman LLP - HR Defense on

Good news for restaurant employers: the regulation that says tips belong to the employee – regardless of whether the employer takes the tip credit or pays the full minimum wage — may soon be history. Last week, the Department...more

Beltway Buzz - October, 2017 #4

D.C. is humming this week, as the Senate and House are both in session after taking turns on recess the past two weeks. 401(k) Pre-Tax Deferrals: An Endangered Species? After being overshadowed by ACA repeal-and-replace...more

USDOL's Proposed Tip-Pooling Modification Sent To OMB

by Fisher Phillips on

Oct. 26, 2017 by The Editor The U.S. Department of Labor has taken the next step toward rescinding the prior administration's 2011 regulatory position that an employer may not retain any of an employee's tips even if...more

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