News & Analysis as of

Wage and Hour Tipped Employees Labor Regulations

Stokes Wagner

Fifth Circuit Eliminates 80/20/30 Tip Credit Rule

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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

Bradley Arant Boult Cummings LLP

Tipped Out? 5th Circuit Negates DOL Tip Credit Rule

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

Littler

Updates to DC Tipped Wage Workers Amendment Act

Littler on

The District of Columbia’s Tipped Wage Workers Fairness Amendment Act (TWWFAA) continues to be a big talking point for the hospitality industry. Among other things, the TWWFAA requires D.C. employers that employ a tip credit...more

Davis Wright Tremaine LLP

D.C.'s Minimum Wage Increases on July 1, 2024 – Here's Everything Employers Need to Know

The District of Columbia Department of Employment Services ("DOES") has announced a minimum wage increase for all D.C. workers and tipped employees beginning July 1, 2024. Here's what employers need to know: Minimum...more

Saiber LLC

New Jersey’s Minimum Wage Increases Starting January 1, 2024

Saiber LLC on

New Jersey’s new mandatory minimum wage requirement will be effective January 1, 2024. For most employers, the 2024 minimum wage for compensating employees will be $15.13 per hour (up from $14.13 per hour in 2023)....more

Sheppard Mullin Richter & Hampton LLP

Washington D.C. Attorney General Offers Guidance for Restaurant Employers Amidst Spike in Service Fees

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

Morgan, Brown & Joy, LLP

Minimum Wage Increases in Massachusetts (and elsewhere)

Effective January 1, 2023, the minimum wage in Massachusetts increased to $15.00 per hour. The new service rate (applied to workers who provide services to customers and who make more than $20.00 per month in tips) is $6.75...more

Littler

What You Need to Know About Reporting and Training Requirements in the DC Tipped Wage Worker Fairness Amendment Act

Littler on

In 2018, the District of Columbia enacted the Tipped Wage Workers Fairness Amendment Act (“the Act”). Among other things, the Act imposes obligations on employers that employ tipped employees, including significant training...more

Shumaker, Loop & Kendrick, LLP

Client Alert: Florida Minimum Wage to Increase on September 30, 2022

On September 30, 2022, the minimum wage in Florida will increase from $10 per hour to $11 per hour. Employ­ers may pay their properly tipped employees a lower rate of $7.98 per hour (increased from $6.98 per hour), but the...more

Akerman LLP - HR Defense

DOL’s Final Rule on Tipped Employees Takes Effect December 28th

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

Burr & Forman

Department of Labor Releases Final Rule for Tipped Employees

Burr & Forman on

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

FordHarrison

Restaurant Industry Alert: DOL Publishes Final Rule for Tipped Employees

FordHarrison on

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

Littler

Ring in the New Year with Minimum Wage, Tipped and Exempt Employee Pay Increases

Littler on

Minimum wage laws can affect businesses of all sizes, whether operating nationwide, in multiple jurisdictions, or only in one state, county, or city. To help manage this challenge, below we provide a rates-only update that...more

Foley Hoag LLP

Department of Labor Issues New Rule Limiting Use of Tip Credits

Foley Hoag LLP on

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

Littler

DOL Publishes Final Rule to Resurrect 80/20 Rule for Tipped Employees

Littler on

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

FordHarrison

Reminder: Florida Minimum Wage is Now $10.00 Per Hour

FordHarrison on

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

Verrill

What Does The Proposed Federal Minimum Wage Mean For My Business?

Verrill on

On July 22, 2021 the U.S. Department of Labor proposed a rule titled “Increasing the Minimum Wage for Federal Contractors” formalizing the Biden Administration’s Executive Order 14026. The rule calls for federal contractors...more

FordHarrison

Restaurant Industry Alert: DOL Issues Final Rule Modifying Tip Sharing

FordHarrison on

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

Quarles & Brady LLP

New DOL Tip Credit Rule Clarifies When Managers can Keep Tips and Lays Hefty Fines for FLSA Violations

Quarles & Brady LLP on

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

Littler

Final Rule Affirms U.S. Department of Labor’s Power to Fine Businesses That Engage in Tip Theft

Littler on

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

Franczek P.C.

New DOL Rule Adds Civil Penalties for Taking Employee Tips

Franczek P.C. on

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

Lowndes

Florida’s Minimum Wage Rises to $10.00 on September 30

Lowndes on

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

Burr & Forman

11th Circuit Court of Appeals Vacates Employer’s Tip Credit Summary Judgment Victory in Rafferty v. Denny’s

Burr & Forman on

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

Littler

Maine Legislative Update: Back to Work Incentives, Ban the Box, Tip Minimum, and Other Developments Affecting Employers

Littler on

The First Special Session of the 130th Maine Legislature ended on July 19, 2021 with a flurry of votes on pending bills. Many of the newly-enacted laws, which were adopted with little debate, will significantly impact almost...more

Akerman LLP - HR Defense

Tipped and Non-Tipped Work Back Under the Microscope

The old “80/20 rule” is back again for tipped workers under the latest proposed Final Rule issued by the Department of Labor (DOL) last month. Employers in the service industry, especially those employers who take a tip...more

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