News & Analysis as of

Tip-Pooling Service Charges

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

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

Jackson Lewis P.C.

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

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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

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

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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

Bowditch & Dewey

Rhode Island Enacts “Tip Protection” Law

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On June 28, 2022, Rhode Island enacted new “tip protection” legislation. The law, which applies to all employers of tipped employees, prohibits employers from retaining employee tips, creates new requirements for tip pools,...more

Fisher Phillips

Jump In! Kentucky Tip Pools Just Got a Little Warmer for Restaurant Employers

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For years, Kentucky has been one of the few outlier states that further complicated tip pooling by requiring all tip pools to be voluntary. While federal regulations have flipped and flopped with the tide of the changing...more

Bowditch & Dewey

Getting “Tip”-sy: What Brewers Need To Know About Tip-Pooling Arrangements

Bowditch & Dewey on

Over the summer, news broke that Surly Brewing Co. was found liable by a Minnesota court for violations of the state’s tip-pooling law. The brewery, which operates a large beer hall in Minneapolis, was accused by a former...more

Foster Garvey PC

Are You Adopting a Service Charge Model to Help Raise Wages?

Foster Garvey PC on

As lawmakers continue to increase the minimum wage in states and cities across the country, many hoteliers and restaurateurs are implementing service charges and tip pools in order to meet rising costs and help workers earn...more

Epstein Becker & Green

Take 5 Newsletter: Wage and Hour Update - October 9, 2013

Epstein Becker & Green on

- IRS Will Begin Taxing a Restaurant's Automatic Gratuities as Service Charges Many restaurants include automatic gratuities on the checks of guests with large parties to ensure that servers get fair tips. This method...more

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