News & Analysis as of


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

Tip Regulations: The Fundamental Legal Issue

by Fisher Phillips on

This week marked the close of the period for public comment on the U.S. Department of Labor's (USDOL) proposed rescission of the hotly-debated regulatory text that, essentially, extended certain tip credit restrictions to...more

Eleventh Circuit Allows Employer to Share Employee's Tips as Long as It Pays Employee Minimum Wage

by FordHarrison on

Federal regulations currently treat tips as the employee’s property, regardless of whether the employer pays that employee the minimum wage or whether it uses a tip credit to satisfy the minimum wage requirement. ...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

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

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

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

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

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

No Tip Of The Hat To DOL Guidance

by Fox Rothschild LLP on

A recent decision by the Ninth Circuit Court of Appeals (Court) in Marsh v. J. Alexander’s throws a wrench into the equation with respect to the guidance on the tip-credit provision of the Fair Labor Standards Act (FLSA)...more

Tip Credit Rule to White House

by Seyfarth Shaw LLP on

As we’ve reported previously, among the items the Department of Labor identified earlier this year in its Regulatory Agenda was a Notice of Proposed Rulemaking (NPRM) seeking to rescind portions of a 2011 rule that restricted...more

Return of the Living Dead: Could Unsuccessful California Bills Haunt Employers in 2018?

by Littler on

As discussed in our prior article, Governor Jerry Brown recently signed several significant labor and employment measures into law in California, including a statewide ban-the-box provision and an expansion of parental leave...more

Food & Beverage Litigation Update | October 2017 #2

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

Chicago Repeals SSB Tax After Two Months of Enforcement - Chicago officials have voted to repeal a sugar-sweetened beverage (SSB) tax approved in November 2016 by the Cook County Board of Commissioners but delayed by a...more

Florida’s Minimum Wage Rises to $8.25 in 2018

Florida’s minimum wage will increase effective January 1, 2018 as follows: - Florida’s minimum wage will increase by 15 cents from $8.10 to $8.25 per hour. - Florida’s minimum wage for tipped employees will increase by 15...more

Are Restaurant No-Tipping Policies the Product of an Antitrust Conspiracy?

In July of 2013, Danny Meyer, the CEO of the Union Square Hospitality Group, tweeted that he was considering eliminating tipping at his restaurants and solicited the opinion of other restaurant owners. Meyer and others...more

Do Customer Tips Belong to the Employee or Employer? DOL Puts the Question on the Table

by Nexsen Pruet, PLLC on

When a customer leaves a tip for a server, who receives the full amount of the tip at the end of the day? According to a 2011 Department of Labor (DOL) regulation, the tip always belongs to the server, even if the employer...more

Ninth Circuit Deviates from Guidance and Other Authority on Tip Credits

by Foley & Lardner LLP on

We have previously discussed how the Department of Labor (DOL) often issues guidance to assist employers in applying and complying with the DOL’s various regulations. The federal courts generally follow this guidance when...more

Ninth Circuit Rejects DOL’s “80/20 Rule” for Sidework: What This Means for Employers of Tipped Employees

by Payne & Fears on

The Ninth Circuit Court of Appeals recently rejected the U.S. Department of Labor’s (“DOL”) tip-credit guidance, commonly known as the “80/20 rule,” as well as its guidance on tasks unrelated to a tipped occupation. The...more

Restoring Common Sense To Determining Who is a Tipped Employee. Case Summary: Marsh v. J Alexander’s

by Buchalter on

In Marsh v. J. Alexander’s, The Ninth Circuit issued a fundamentally important opinion supporting the hospitality industry nationwide. Specifically, the Ninth Circuit rejected the U.S. Department of Labor’s (“DOL”) disastrous...more

Minnesota Restaurateurs: Get Compliant with Tip Statutes Before Super Bowl LII

by Nilan Johnson Lewis PA on

Super Bowl LII at U.S. Bank Stadium presents a great opportunity for Minneapolis restaurateurs to generate significant income from parties hosted before and during the big game. With that opportunity, though, comes the...more

2018 "Contractor Minimum Wage" Rate Released

by Fisher Phillips on

The U.S. Labor Department has published the 2018 wage-rate floor required by Executive Order 13658, "Establishing A Minimum Wage for Contractors". Beginning on January 1, 2018, the minimum rate will increase by 15 cents per...more

Hospitality Employers Beware: Confusion of the Use of the Tip Credit Persists

by Holland & Knight LLP on

• The Ninth Circuit recently rejected federal Department of Labor (DOL) interpretive guidance that banned employers from using the federal tip credit for time spent on non-tip-generating activities if those tasks exceed 20...more

Ninth Circuit Cooks Up Rejection of Servers’ Claims and Sends DOL’s 20% Tip Credit Rule Back to the Kitchen, Creating Circuit...

by Seyfarth Shaw LLP on

Seyfarth Synopsis: The Ninth Circuit has created a circuit split by rejecting the DOL’s interpretation of FLSA regulations on use of the tip credit to pay regularly tipped employees, finding that the interpretation is both...more

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