Are Overtime Wages and Tips Exempt From Income Tax? What Employers Need to Know to Prepare
FLSA and Wage and Hour Issues for Restaurants
#WorkforceWednesday: Mandatory Vaccination, Tipped Worker Rule, and SCOTUS Rules Against Organized Labor - Employment Law This Week®
Reporting Cash Tips to the IRS [More with McGlinchey, Ep. 24]
#WorkforceWednesday: EEOC Withdraws, DOL Rolls Back, and OSHA Expands - Employment Law This Week®
II-36- Holiday Party Tips, the 2018/2019 Federal Regulatory Agenda, and Noteworthy Cases On Suing and Being Sued
President Trump signed into law what is commonly referred to as the One Big Beautiful Bill Act (OBBBA), extending provisions from the Tax Cuts and Jobs Act of 2017 otherwise set to expire at the end of this year. The new...more
The freshly enacted “One Big Beautiful Bill” introduces two above-the-line tax deductions for tips and overtime wages. While these deductions offer potential savings for eligible workers, they come with new compliance...more
On July 4, 2025, President Donald Trump signed a comprehensive budget reconciliation bill into law, loosening rules around health savings accounts (HSAs), extending telehealth relief, and providing additional income tax...more
On July 4, 2025, President Trump signed the One Big Beautiful Bill Act (“OBBBA”) into law. Among other things, the OBBBA includes a new deduction for tipped workers, referred to as “no tax on tips.” One Big Beautiful Bill...more
One of President Donald Trump’s 2024 campaign messages was a promise to implement a no-tax-on-tips and no-tax-on-overtime law. On July 3, 2025, the U.S. Congress passed the “One Big Beautiful Bill,” and President Trump signed...more
The Big Beautiful Bill was signed into law by President Trump on July 4, 2025. The BBB is a complex budget reconciliation law (a law that follows a special procedure for more simplified passage) that contains over a thousand...more
Don’t have the energy to slog through the 1,127 (or so) pages of the legislative text, amendments, and explanatory materials that comprise the final version of the “Big Beautiful Bill” to see how it impacts labor and...more
On July 3, 2025, the U.S. House of Representatives narrowly passed H.R.1, the so-called “One Big Beautiful Bill Act,” ending a dramatic journey through Congress that dominated headlines in recent weeks. President Donald J....more
As we await the House of Representatives’ vote on the One Big Beautiful Bill, let’s highlight two key provisions that may soon impact employers and employees alike. The Senate bill under consideration before the House of...more
The “One Big Beautiful Bill Act” (the “BBB”) was passed by the U.S. House of Representatives on May 22, 2025 (such version, the “House Bill”) as part of the Republican Congress’s reconciliation package. The BBB generally...more
Understanding the difference between service charges and tips is critical for New York restaurant owners to remain compliant with state and federal labor laws. Misclassifying these charges can lead to legal disputes,...more
Tax breaks on overtime pay and tipped earnings passed the House on May 22, 2025, as part of the “One Big Beautiful Bill Act” (H.R. 1). The tax deductions provided under the sprawling reconciliation bill would be temporary,...more
On May 20, 2025, the U.S. Senate passed the “No Tax on Tips Act” with unanimous consent. The bill now heads to the U.S. House of Representatives. If passed, the “No Tax on Tips Act” would allow employees in tipped...more
Many employers in hospitality and other service industries take the tip credit toward their minimum wage obligation under federal wage and hour law – but complying with evolving rules has been challenging in recent years....more
If you’re a political nerd like me, you may have observed then-candidate and now President Donald J. Trump’s pledge to eliminate taxes on tips. In fact, he doubled down on this promise in his speech to Congress on March 4,...more
Join Carlton Hilson and Amy Jordan Wilkes as they discuss the recent proposals that aim to eliminate federal taxes on overtime pay and tips and what this means for employers....more
Tipping has been part of the modern-day American restaurant experience for decades. Like most forms of income, these tips are taxable and subject to income tax. But what if this income was free from income tax liability?...more
Section 3(m)(2)(B) of the FLSA prohibits employers, including managers or supervisors, from keeping any portion of an employee’s tips. Accordingly, the law has been clear that a manager or supervisor cannot participate in a...more
On January 14, the US Department of Labor’s (DOL) Wage and Hour Division (WHD) published two opinion letters, FLSA2025-1, which addresses tip pooling under the Fair Labor Standards Act (FLSA), and FMLA2025-1-A, which provides...more
The DOL Wage & Hour Division issued its first Opinion Letter of 2025 (FLSA2025-1) on January 14, 2025, stating that managers and supervisors, no matter their duties during a particular shift, cannot participate in employee...more
On January 14, 2025, the U.S. Department of Labor (DOL) issued Opinion Letter FLSA2025-1 pertaining to managers’ participation in a tip pool at a “quick service restaurant.” ...more
The City of Boulder has enacted its own local minimum wage ordinance, which took effect January 1, 2025, setting the city’s minimum wage at $15.57 per hour. The new law adds another challenge to multi-jurisdiction compliance...more
Once again, we rang in the new year with a great many state and local minimum wage increases. This year, 23 states—and several counties and cities—will increase their minimum wages and, where applicable, tipped minimum...more
Effective January 1, 2025 the minimum wage in Rhode Island has been increased to fifteen dollars ($15.00) per hour. Exceptions to the new minimum wage in Rhode Island will continue for fulltime students under nineteen (19)...more
Starting in 2025, Colorado’s state minimum wage, which is adjusted for inflation, will increase from $14.42 to $14.81 per hour. For tipped workers, the minimum wage will continue to be $3.02 less than the standard minimum...more