News & Analysis as of

Tipped Employees

“Back of House” Tip Pooling Could Land California Employers in Hot Water

by Hirschfeld Kraemer LLP on

As mentioned in our blog post on the Department of Labor’s (“Department”) new opinion letters clarifying aspects of the Fair Labor Standards Act (“FLSA”), April has seen a lot of changes and clarifications to the FLSA. One...more

The Consolidated Appropriations Act: Tipping in The Hospitality Industry

by Buchalter on

Despite threatening a veto, President Trump signed the 2018 Consolidated Appropriations Act (Public Law No. 115-141) on March 23, 2018. The Act is more than 2000 pages in length....more

Congress Amends Fair Labor Standards Act, Takes Firm Stand Against Tip Theft

On March 23, 2018, with national attention focused on the specter of a government shutdown and a potential veto on Congressional spending measures, President Donald Trump signed into law the Consolidated Appropriations Act of...more

Congress Paves the Way for Tip Pooling to Include Back-of-the-House Employees

The history of tip pooling for employers who do not utilize a tip credit has been a rocky one. Past articles on this site have chronicled an employer’s ability to pool and distribute tips to all employees, including those in...more

DOL Clarifies Tip Pooling Law

by FordHarrison on

As reported last week, on March 23rd, President Trump signed into law a massive spending bill that, among other things, amended the Fair Labor Standards Act (FLSA) to clarify that a manager or supervisor may not keep his...more

DOL Clarifies Amendment to the FLSA's Tip Pool Rules

by Littler on

On March 27, 2018, President Donald Trump signed into law Congress’s $1.3 trillion, 2,232-page omnibus budget bill, the Consolidated Appropriations Act, 2018. ...more

New Tip Pool Rules - Changes to the FLSA and DOL Guidance

by Franczek Radelet P.C. on

If you’ve been paying attention to the news relating to wage and hour law (and really, who isn’t?), you may recently have heard quite a bit about new federal rules on tipped employees, and more recently Congress stepping in...more

New Tip Pooling Guidelines For Employers

The recent passage of the Consolidated Appropriations Act of 2018 (“H.R. 1625”), an 878-page omnibus spending bill, significantly changes the rules for tip pooling under the Fair Labor Standards Act (the “FLSA”). While the...more

Department Of Labor Issues Initial Guidance On Tip Pooling Amendment

by Jackson Lewis P.C. on

This week the Department of Labor issued new guidance, in a “Field Assistance Bulletin,” on the recent amendment to the FLSA regarding tip sharing. The recent amendment to the FLSA (which was included in the omnibus budget...more

Tip Pooling Updates

by Fox Rothschild LLP on

The Fair Labor Standards Act now permits back-of house employees to participate in mandatory tip pools, provided no tip credit is taken against minimum wage. The Consolidated Appropriations Act, 2018 budget bill effectively...more

The Tip Pooling Saga: What Employers Need to Know with Tip Pooling Being Legal Once Again

by Garvey Schubert Barer on

Just when it seemed that service charges were all the rage, tip pooling has reemerged to grab the headlines. Making the rounds from courts to agencies, and now Congress, the issue appears to have been settled by Congress that...more

Tip Pooling With Back-Of-House Is IN (in Most States); Manager and Supervisor Tip-Sharing Is OUT

The Fair Labor Standards Act now permits many employers to include back-of-house employees in tip pools, and prohibits employer, manager, and supervisor participation. On March 23, 2018, President Trump signed the new...more

New Legislative Action on "Tip Pooling"

by Polsinelli on

Congress and the President have waded in to the ongoing debate regarding employers’ use of “tip pools” under the Fair Labor Standards Act (“FLSA”) by passing the Tip Income Protection Act (“TIPA”) as part of the omnibus...more

Tip Sharing: Budget Law Amends FLSA and Derails DOL Action

by Shipman & Goodwin LLP on

Last week, the federal government passed its new budget proposal, which included an amendment of the Fair Labor Standards Act (FLSA) to protect the rights of tipped workers. Prior to this law, tip sharing rules were governed...more

Who Won? – The New Tip Pool Law

by FordHarrison on

On March 23rd, President Trump signed into law a massive spending bill. Buried on page 2025 of the spending bill, available here, is the following amendment to Section 203(m) of the Fair Labor Standards Act (FLSA), the...more

WPI Wage Watch: Minimum Wage & Overtime Updates (March Edition)

by Littler on

Never mind the Ides of March, for employers with tipped employees: beware the federal budget process. Presumably no one’s March Madness bracket had federal Fair Labor Standards Act (FLSA) amendments going to, let alone...more

Congress Addresses Who Can Share Tips

The 2018 federal appropriations bill signed into law on March 23rd includes an addition to the Fair Labor Standards Act (FLSA) stating that “[a]n employer may not keep tips received by its employees for any purposes,...more

Here's a Tip: Tread Carefully

by Fisher Phillips on

As we previously wrote, Congress has now amended Section 3(m) of the federal Fair Labor Standards Act (FLSA) to prohibit an employer from "keep[ing] tips received by its employees for any purpose, including allowing managers...more

New Law Prevents Employers from Taking Tips

by Varnum LLP on

In the restaurant industry, "tip-pooling" is the practice of sharing tips between front-house tipped-employees (servers and waiters), and back-house non-tipped employees (cooks and dishwashers). Traditionally, employers have...more

FLSA Amendment Bars Employers From Retaining Tips But Removes DOL Prohibition On Tip Sharing

by Jackson Lewis P.C. on

An amendment to the Fair Labor Standards Act (FLSA) in the omnibus budget bill, “Consolidated Appropriations Act, 2018,” passed by Congress and signed by President Donald Trump on March 23, 2018, provides that an employer...more

FLSA Amendment Bans Employers From "Keeping" Tips

by Fisher Phillips on

In the budget reconciliation bill passed early this morning, Congress included a rider amending the federal Fair Labor Standards Act (FLSA) Section 3(m) to state, An employer may not keep tips received by its employees for...more

Introducing The Tip Income Protection Act: Congress’s Misguided Attempt To Turn The FLSA Into A Wage Payment Law

by Seyfarth Shaw LLP on

Seyfarth Synopsis: If it becomes law, a new bill will expand the FLSA’s tip provisions into areas traditionally regulated by state law and create new areas of ambiguity that could be a breeding ground for yet more wage-hour...more

D.C. Voters Will Decide Whether to Eliminate Tipped Restaurant Wages

Washington D.C. may become the next local government to require that restaurants pay minimum wage to its servers, bartenders, and any other workers who currently earn a “tipped wage” – a lower base wage, plus tips. Presently,...more

Ninth Circuit Creates More Uncertainty in 80/20 Rule for Tipped Workers

by FordHarrison on

On February 16, 2018, the United States Court of Appeals for the Ninth Circuit granted en banc review of Marsh v. J. Alexander’s LLC, 869 F.3d 1108, creating a new layer of uncertainty for hospitality employers....more

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

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