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
On October 29, 2021, the U.S. Department of Labor (DOL) published its Final Rule related to tipped employees. It is effective December 28, 2021. DOL had issued a Notice of Proposed Rulemaking (NPRM) on June 21, 2021,...more
On October 28, 2021, the U.S. Department of Labor (DOL) announced publication of a final “dual jobs” rule, which reverses course from a December 2020 final rule and resurrects the so-called “80/20 Rule” that governs how...more
On September 23, 2021, the U.S. Department of Labor (DOL) issued its latest rule related to tip pooling. The rule modifies and clarifies aspects of a rule previously issued by the Trump administration. ...more
On September 24, 2021, the Department of Labor published its most recent rule regarding tip regulations under the Fair Labor Standards Act (“FLSA”). This final rule will go into effect on November 23, 2021....more
The 11th Circuit clarified that employers, not employees, bear the burden of proving compliance with the 80-20 rule for employees subject to the tip credit under the FLSA....more
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
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
Employers should continue to track and keep records of the percentage of time tipped wage earners spend performing non-tip eligible tasks, as the U.S. Department of Labor (DOL) has pressed pause on several provisions of the...more
Many hospitality businesses, such as restaurants and bars, have found themselves restructuring their daily operations in light of the current global COVID-19 health crisis, and the subsequent federal, state, and local shelter...more
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
Q: I heard New York is changing its rules around tip credits for some types of employees. What do I need to know? ...more
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
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
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
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 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
Seyfarth Synopsis: Even though the DOL abandoned its 20% tip credit rule in November 2018, one federal district judge has refused to defer to the agency, opting to defer to the old guidance instead....more
Recently, we discussed the U.S. Department of Labor’s (“DOLs”) rescission of the 80/20 rule. Unfortunately, less than two months after the DOL’s rescission, the U.S. District Court for the Western District of Missouri...more
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
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 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
A restaurant advocacy group has sued the Department of Labor challenging its “80/20 Rule,” which limits the use of a tip credit wage where workers spend more than 20% of their time doing work not directly related to...more
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
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
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