News & Analysis as of

Wage and Hour Tips Tipped Employees

Fisher Phillips

Where Do We Stand? An Action Plan for Employers on Tip Credit Compliance and the 80/20 Rule

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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

Epstein Becker & Green

Time is Money: A Quick Wage-Hour Tip on … DOL Confirms Managers Are Blocked from Tip Pool Even When Working in Non-Supervisory...

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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

Littler

New Minimum Wage Takes Effect in Boulder, Colorado

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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

Epstein Becker & Green

Many State and Local Minimum Wages Increased on January 1, 2025

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

Adler Pollock & Sheehan P.C.

Minimum Wage Increases in Rhode Island and Connecticut. Stays the same in Massachusetts.

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

Perkins Coie

Colorado Announces Minimum Wage Increases for 2025

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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

Fisher Phillips

Labor Department Withdraws Onerous 80/20/30 Tip Credit Rule: 5 Practical Tips for Employers

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If you take the tip credit for employees that receive gratuities, you’ll want to review your policies and practices in light of Monday’s game-changing announcement from the U.S. Department of Labor (DOL). The Department...more

Hinckley Allen

[Webinar] Workplace Compliance and Policy Changes — Prepare for 2025 - January 9th, 12:00 pm - 1:15 pm EST

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Hinckley Allen’s Labor & Employment Group invites you to our fifth virtual Lunch & Learn program. We’ll cover various topics, including: - Potential policy changes under the new Trump administration...more

Littler

Littler’s Semi-Annual Rates Update for Minimum Wage, Tips, and Exempt Pay Increases on January 1, 2025 (and Other Developments)

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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

Perkins Coie

Massachusetts Voters Retain Subminimum Wage for Tipped Employees

Perkins Coie on

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

Fisher Phillips

Massachusetts Voters Retain Current Tip Credit Law – What Does Your Restaurant Need to Know?

Fisher Phillips on

In the recent Massachusetts state election, voters faced a pivotal decision on a ballot initiative aiming to eliminate the tip credit system. The proposal sought to require employers to pay tipped employees the full state...more

Fox Rothschild LLP

Massachusetts Voters Reject Ballot Measure Requiring Tipped Employees to Be Paid Full Minimum Wage—Is this a New Trend?

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Should tipped employees be paid the full minimum wage? Massachusetts residents voted a resounding “No” and rejected a proposed change to the state’s minimum wage law that would have required tipped employees to be paid 100%...more

Akerman LLP - HR Defense

A Tip for Employers With Tipped Employees — Stay on Top of the Ever-Changing Guidance on the 80/20 Rule!

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

Seyfarth Shaw LLP

Tips from Seyfarth: Opinion Update – Fifth Circuit Clarifies Scope of its Decision Vacating 80/20 Rule

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Tips from Seyfarth is a blog series for employers, and their in-house lawyers and HR, payroll, and compensation professionals, in the food, beverage, and hospitality sector. We curate wage and hour compliance “tips” to keep...more

Fisher Phillips

Top 10 Workplace Law Developments To Expect Under President Trump

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Now that we know Donald Trump will return to the White House as President, it’s time for employers to take a look at what they might expect during his second term in office. We have gathered insights from some of our firm’s...more

Falcon Rappaport & Berkman LLP

No Tax on Tips: Pragmatic Tax Proposal or Populist Tax Policy Nightmare?

Recently, both major-party presidential candidates have come out in favor of a “no tax on tips” proposals, though neither candidate has indicated how to implement one. There have been proposals from other legislators, though...more

Troutman Pepper Locke

The Fifth Circuit Strikes Down DOL’s Rule for Tipped Employees

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In a highly anticipated decision published on August 23, 2024, the United States Court of Appeals for the Fifth Circuit struck down the Department of Labor’s (DOL) Final Rule that limited the circumstances under which an...more

Littler

Michigan Supreme Court Clarifies Minimum Wage & Tipped Rates and Schedule for 2025 and Future Years

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On September 18, 2024, at the request of the State of Michigan and its attorney general, the Michigan Supreme Court clarified issues relating to future minimum wage rates and minimum cash wage rates for tip-credit employees...more

Robinson Bradshaw

Fifth Circuit Strikes Down DOL Tip Rule

Robinson Bradshaw on

On Aug. 23, the Fifth Circuit Court of Appeals invalidated the DOL’s 2021 rule on tip credits under the Fair Labor Standards Act. While the tip credit lives on, the Fifth Circuit’s ruling simplifies compliance for many...more

Morgan, Brown & Joy, LLP

Fifth Circuit Strikes Down Department of Labor’s “80/20” Tip Credit Rule

On August 23, 2024, the Fifth Circuit, in Restaurant Law Center v. U.S. Department of Labor, No. 23-50562 (Aug. 23, 2024), struck down the Department of Labor’s (“DOL”) 2021 rule restricting an employer’s ability to claim tip...more

Cranfill Sumner LLP

Making it “Rein”: Fifth Circuit Looks to Roll Back Department of Labor Rulemaking Authority

Cranfill Sumner LLP on

A trio of cases before the United States Court of Appeals for the Fifth Circuit have challenged the core of US Department of Labor rulemaking. With varying levels of success. Restaurant Law Center v. DOL pertains to the DOL’s...more

Bowditch & Dewey

Tip Credits – Striking Down the Federal Rule & Massachusetts Ballot Question

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On August 23, 2024, the United States Court of Appeals for the Fifth Circuit struck down the Department of Labor’s (“DOL”) 80/20/30 Rule, which set parameters for how employers can use tip credits under the Fair Labor...more

BakerHostetler

Tipped Occupations: Is the 80/20 Rule Dead? That’s a Geography Question!

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On August 23, 2024, in Restaurant Law Center v. DOL, the Fifth Circuit vacated the Department of Labor’s (DOL) final rule concerning tipped employees. Citing the Supreme Court’s recent decision in Loper Bright v. Raimondo,...more

Littler

Littler Lightbulb: August Appellate Roundup

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This Littler Lightbulb highlights some of the more significant employment law developments in federal courts of appeal in the last month. Fifth Circuit Vacates DOL Tip Credit Rule...more

Dinsmore & Shohl LLP

Contested DOL Rule on Tip Credit Invalidated by Fifth Circuit

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Recently, the United States Court of Appeals for the Fifth Circuit issued a decision on the Department of Labor's (DOL) rule concerning tipped employees. This final rule, introduced in 2021, addresses the amount of time a...more

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