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
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
In the restaurant/service industry, gratuities (To Ensure Prompt Service or “tips”) motivate individuals to seek employment. Everywhere you turn, even if you did not receive any real service, workers are seeking tips....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
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
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
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
Governor Lamont signs House Bill 7501 into law on January 6, 2020. As we say goodbye to 2019 (and await commencement of the 2020 session of the Connecticut General Assembly in February), the General Assembly via a “Special...more
Seyfarth Synopsis: A proposed amendment to New York State regulations would eliminate the “tip credit” for a wide variety of workers....more
Another Future of Work Hearing Scheduled. The House Higher Education and Workforce Development Subcommittee has announced a hearing titled “The Future of Work: Ensuring Workers Are Competitive in a Rapidly Changing Economy.”...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
Employers in the hospitality and restaurant industry are poised for celebration: the Department of Labor (DOL) has proposed eliminating a rule that requires tracking the time tipped employees devote to non-tip producing...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
In February, love was not the only thing in the air; wafting through legislative chambers across the country was the sweet smell of bills about the minimum wage, tips, and overtime. Many bills will be stood up, or ultimately...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
The Massachusetts Attorney General’s Office recently published guidance regarding how a new tipped-employee law is to be applied. ...more
Seyfarth Synopsis: D.C.’s newest law – the Tipped Wage Workers Fairness Amendment Act of 2018 (the “Act”) – officially took effect on December 13th. ...more
With 2018 winding down, employers should be prepared for the minimum wage increases that are expected in the New Year. Even though the federal minimum wage has stagnated at $7.25 per hour since 2009, state legislatures have...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 application of the 80/20 Rule has been a hot topic in the restaurant industry the last several years because it is the foundation of an onslaught of collective and class action litigation brought by service workers...more