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Tips Fair Labor Standards Act (FLSA) Regulatory Reform

Littler

DOL Proposal to Resurrect 80/20 Rule for Tipped Employees Fails to Alleviate Longstanding Industry Concerns

Littler on

On June 23, 2021, the U.S. Department of Labor (DOL) published a notice of proposed rulemaking (NPRM), which reverses course from a December 2020 final rule and seeks to resurrect the so-called “80/20 Rule” that governs how...more

FordHarrison

Department of Labor Proposes Limits to Tip Credit for Work "Directly Supporting" Tipped Work

FordHarrison on

Executive Summary: On Monday, June 21, 2021, the U.S. Department of Labor (DOL) issued a Notice of Proposed Rulemaking (NPRM) proposing limits on the tip credit employers can take during workweeks when tipped employees...more

Ward and Smith, P.A.

Thanks for the Tip: U.S. DOL's Proposed Rule and Potential Enhanced Availability of "Tip Pools"

Ward and Smith, P.A. on

The Fair Labor Standards Act of 1938 ("FLSA"), for decades, has permitted employers to pay some workers a lower minimum hourly wage than would otherwise be due if the workers receive at least a minimum amount per month in the...more

Littler

WPI Wage Watch: Minimum Wage, Tip, and Overtime Developments (January 2020 Edition)

Littler on

If January's minimum wage, tip, and overtime developments forecast what employers should expect throughout the remainder of the year, it could be a challenging 2020....more

Troutman Pepper

New York State To Eliminate Tip Credit For Many Employees Beginning June 2020

Troutman Pepper on

Q:  I heard New York is changing its rules around tip credits for some types of employees.  What do I need to know? ...more

Littler

Connecticut’s New Restaurant Wage Law Codifies “80/20 Rule” for Tipped Employees

Littler on

Following months of political maneuvering, including a gubernatorial veto, Connecticut has enacted compromise legislation that attempts to clarify how restaurants and other hospitality industry employers must pay workers who...more

Bricker Graydon LLP

Changes in store for tipped employees: DOL proposes host of new tip regulations

Bricker Graydon LLP on

On October 8, 2019, the U.S. Department of Labor (DOL) proposed changes to the Fair Labor Standards Act (FLSA) regulations governing the wages of tipped employees, specifically, tip credits and tip pools....more

FordHarrison

Department of Labor Deflates the 80/20 Rule & Inflates the Tip Pool

FordHarrison on

On Monday, October 7, 2019, the Department of Labor (DOL) proposed a new 80/20 rule and tip pooling regulation. First, the proposed regulation, if finalized, will permit employers to take a tip credit regardless of the...more

Epstein Becker & Green

U.S. DOL Announces Proposed New Rule on Tip Credits and Pooling

Epstein Becker & Green on

Rules relating to tip credit and pooling have resulted in significant debate among legislators, regulators, and the courts, leading to confusion, further litigation, and, in many cases, substantial liability or settlements...more

Seyfarth Shaw LLP

WHD Releases Proposed Rule on Tipped Employees

Seyfarth Shaw LLP on

Seyfarth Synopsis: The Department of Labor’s Wage & Hour Division announced its long-awaited proposed rule related to the FLSA’s tip provisions. The rule would implement statutory changes passed in March 2018; it also would...more

Holland & Hart - Employers' Lawyers

U.S. DOL Eases Restriction on Tipped Employees

...In a new opinion letter released November 8, 2018, the U.S. Department of Labor (DOL) decided to eliminate the “80/20 Rule” which had previously limited employers’ ability to take a “tip credit” toward their employees’...more

Franczek P.C.

What Duties Can A Server Perform Under the Tip Credit Rules? [Wage & Hour FAQ]

Franczek P.C. on

Q. We use the tip credit for servers who work in our restaurant. When service is slow, we ask our servers to pitch in with other jobs around the restaurant, like sweeping up the dining room and cleaning the restroom. ...more

Akerman LLP - HR Defense

A Tip from the Department of Labor: The 80/20 Rule Has Been Rescinded

Akerman LLP - HR Defense on

Employers are no longer barred from taking the tip credit for tipped employees who spend more than 20% of their time doing non-tipped activities, according to a new U.S. Department of Labor opinion letter doing away with the...more

FordHarrison

Department of Labor Relaxes Rules for Tipped Employees

FordHarrison on

The Department of Labor’s Wage and Hour Division (WHD) has announced it will no longer apply the “80/20 rule” to tipped employees, and will no longer require employers to pay the full minimum wage for time spent by a tipped...more

Seyfarth Shaw LLP

Check, Please!  DOL Issues Opinion Letter Ending Its 20% Tip Credit Rule

Seyfarth Shaw LLP on

Seyfarth Synopsis: The DOL has reissued a long-awaited opinion letter withdrawing its previous 20% tip credit rule and making clear that “no limit is placed on the amount of [related but non-tipped] duties that may be...more

Seyfarth Shaw LLP

Ninth Circuit Issues En Banc Decision Upholding DOL’s 20% Tip Credit Rule; Ball Is Now In DOL’s Court

Seyfarth Shaw LLP on

Seyfarth Synopsis: In an en banc decision, the Ninth Circuit reverses its prior panel opinion rejecting the DOL’s interpretation of FLSA regulations on use of the tip credit to pay regularly tipped employees, finding that the...more

McNees Wallace & Nurick LLC

Congress Takes a Dip in the Tip Pool

President Trump recently signed into law Congress’ $1.3 trillion, 2,232-page omnibus budget bill. Notably, tucked away on page 2,025 of the bill, Congress amended the Fair Labor Standards Act to address rules affecting...more

Buchalter

The Consolidated Appropriations Act: Tipping in The Hospitality Industry

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

Schwabe, Williamson & Wyatt PC

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

FordHarrison

DOL Clarifies Tip Pooling Law

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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

Littler

DOL Clarifies Amendment to the FLSA's Tip Pool Rules

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

Franczek P.C.

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

Franczek 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

Polsinelli

New Legislative Action on "Tip Pooling"

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

FordHarrison

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

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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

Akerman LLP - HR Defense

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

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

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