On August 23, 2024, in Restaurant Law Center v. U.S. Department of Labor, the U.S. Court of Appeals for the Fifth Circuit vacated the U.S. Department of Labor’s so-called “80/20/30 Rule” that governed how tipped employees...more
Dear Littler,
We operate sandwich shops in a couple of states. Although we have tables, we don’t have table service, and customers pick up food at the counter themselves to either take out or seat themselves at our...more
8/16/2023
/ Employer Liability Issues ,
Fair Labor Standards Act (FLSA) ,
Federal Labor Laws ,
Food Service Workers ,
Hospitality Industry ,
Minimum Wage ,
Restaurant Industry ,
Tip Credit ,
Tip-Pooling ,
Tipped Employees ,
Tips ,
Wage and Hour
On April 28, 2023, the U.S. Court of Appeals for the Fifth Circuit ordered a Texas court to further consider a legal challenge to the United States Department of Labor’s 80/20 Rule, which applies to employers that take a tip...more
5/1/2023
/ Department of Labor (DOL) ,
Employer Liability Issues ,
Employment Litigation ,
Fair Labor Standards Act (FLSA) ,
Federal Labor Laws ,
Food Service Workers ,
Minimum Wage ,
Restaurant Industry ,
Tip Credit ,
Tipped Employees ,
Tips ,
Wage and Hour
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
10/29/2021
/ Employer Liability Issues ,
Fair Labor Standards Act (FLSA) ,
Final Rules ,
Food Service Workers ,
Hospitality Industry ,
Job Duties ,
Labor Regulations ,
Regulatory Standards ,
Restaurant Industry ,
Rulemaking Process ,
Tipped Employees ,
Tips ,
Wage and Hour
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
6/23/2021
/ Department of Labor (DOL) ,
Employer Liability Issues ,
Fair Labor Standards Act (FLSA) ,
Food Service Workers ,
Hospitality Industry ,
Labor Reform ,
Labor Regulations ,
Minimum Wage ,
NPRM ,
Regulatory Reform ,
Regulatory Standards ,
Restaurant Industry ,
Tip Credit ,
Tipped Employees ,
Tips ,
Wage and Hour
The U.S. Department of Labor (“DOL” or “the Department”) is proposing to delay and revise portions of the Trump administration regulations related to tipped employees under the Fair Labor Standards Act (“FLSA” or “the Act”). ...more
On January 15, 2021, the U.S. Department of Labor issued two opinion letters addressing tip-related issues. The first, FLSA2021-4, addresses whether, and in what circumstances, a restaurant that takes a tip credit for its...more
1/20/2021
/ Department of Labor (DOL) ,
Employer Liability Issues ,
Fair Labor Standards Act (FLSA) ,
Food Service Workers ,
Labor Reform ,
Labor Regulations ,
Minimum Wage ,
Restaurant Industry ,
Tip Credit ,
Tip-Pooling ,
Tipped Employees ,
Tips ,
Wage and Hour
On December 22, 2020, the U.S. Department of Labor (DOL) issued a final rule solidifying tip credit issues under the Fair Labor Standards Act (FLSA). The rule becomes effective 60 days after its publication in the Federal...more
12/24/2020
/ Consolidated Appropriations Act (CAA) ,
Department of Labor (DOL) ,
Employer Liability Issues ,
Fair Labor Standards Act (FLSA) ,
Food Service Workers ,
Labor Reform ,
Labor Regulations ,
Restaurant Industry ,
Tip Credit ,
Tipped Employees ,
Wage and Hour
Over a year after Congress amended the Fair Labor Standards Act (FLSA) to clarify tip ownership questions, the U.S. Department of Labor (DOL) finally published a Notice of Proposed Rulemaking on October 8, 2019, with proposed...more
10/9/2019
/ Comment Period ,
Consolidated Appropriations Act (CAA) ,
Department of Labor (DOL) ,
Employer Liability Issues ,
Fair Labor Standards Act (FLSA) ,
Field Assistance Bulletins ,
Minimum Wage ,
NPRM ,
Proposed Regulation ,
Regulatory Requirements ,
Restaurant Industry ,
Rulemaking Process ,
Tip Credit ,
Tipped Employees ,
Tips ,
Wage and Hour
As part of our practice, we like to keep an eye on significant legislative, regulatory, and judicial developments affecting our clients in the hospitality industry....more
4/3/2019
/ Anti-Harassment Policies ,
Employer Liability Issues ,
Hospitality Industry ,
Hotels ,
Human Trafficking ,
Legislative Agendas ,
Nightclubs ,
Restaurant Industry ,
Sexual Assault ,
Sexual Harassment ,
Slavery ,
Tip Credit ,
Tipped Employees ,
Wage and Hour ,
Work Schedules ,
Workplace Safety
Many years ago, the U.S. Department of Labor (DOL) issued guidance known as the "20% Rule" or "80/20 Rule," which provides that, where tipped employees spend in excess of 20% of their workweek on non-tip-earning tasks, no tip...more