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
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
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
While Americans across the country headed to the polls to decide who would govern their country, state, county, or city, most decisions were already made concerning what minimum pay rate would govern the employment of...more
On election day Massachusetts voters were given the opportunity to vote on the Fair Wage for Tipped Workers Act, a ballot measure, referred to as Question 5, that would have gradually increased pay for tipped workers until it...more
Employers with tipped employees are constantly trying to keep up with the ever-changing and evolving tip credit rules promulgated by the United States Department of Labor (DOL) — specifically, what is known as the 80/20 rule....more
The U.S. Court of Appeals for the Fifth Circuit (Texas, Louisiana, and Mississippi) has struck down the Department of Labor’s “80/20/30 Rule,” which had set guidelines for how tipped employees are compensated under the Fair...more
How the FLSA “tip credit” is applied has been pushed and pulled numerous times over the last two decades. In the latest volley, the Fifth Circuit entered an order on August 23, 2024, vacating the Department of Labor’s 2021...more
In 2022, Washington D.C. voters passed Initiative 82, or the “District of Columbia Tip Credit Elimination Act,” which later became law in February 2023. As we previously reported, the law will gradually phase out the “tip...more
In the current battle to hire and retain good workers, employers have developed creative ways to balance employees’ increased compensation expectations against the costs of running a business. In addition, restaurants using...more
On March 18, 2022, the U.S. Court of Appeals for the Eleventh Circuit upheld a district court’s decision that an 18% service fee charged at the upscale Miami steakhouse of celebrity chef Nusret Gökçe was not a “tip” and was...more
Beginning December 28, 2021, employers must pay tipped employees the full minimum wage for periods when non tip-producing work is performed for a substantial amount of time, in light of a new Department of Labor (DOL) Final...more
Tip Credits under the Fair Labor Standards Act - The Fair Labor Standards Act (“FLSA”) generally permits employers to pay tipped employees less than the minimum hourly wage, provided that the tips the employee receives are...more
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
2021 saw state and local legislatures shifting their focus away from COVID-19 measures back to traditional employment law matters. Although two states and the District of Columbia have COVID-19 related legislation going into...more
The California Legislature again had a busy session and passed a number of laws that will materially impact California employers and their business operations. Below is a list of some of the key employment-related bills that...more
On October 28, 2021, the United States Department of Labor (DOL) announced a new rule affecting employers with tipped employees. The rule limits the circumstances under which employers may take a “tip credit” against an...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
With the 2021 California legislative year closed, it is now time to examine the new legislation that will affect California companies. We have summarized the key new legislation below, with relevant action items noted....more
Florida voters on November 3, 2020, passed Amendment 2, which will, over a period of years, increase Florida’s minimum wage to $15.00 per hour. The first annual increase was effective September 30, 2021, and increased the...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 U.S. Department of Labor published a final rule on September 23, 2021 clarifying several amendments to section 3(m) of the Fair Labor Standards Act (FLSA) that concern tip pooling. The final rule reestablishes the DOL’s...more
In 2018, Congress added a provision to the Fair Labor Standards Act prohibiting employers from retaining employee tips or allowing managers or supervisors to participate in a tip pooling arrangement. Today, the U.S....more
Effective September 30, 2021, the minimum wage in Florida will increase to $10.00 per hour from its current rate of $8.65 per hour. The increase stems from a state constitutional amendment, approved by Florida voters last...more