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
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
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
On March 27, 2018, President Donald Trump signed into law Congress’s $1.3 trillion, 2,232-page omnibus budget bill, the Consolidated Appropriations Act, 2018. ...more
4/12/2018
/ Consolidated Appropriations Act (CAA) ,
Department of Labor (DOL) ,
Deregulation ,
Employer Liability Issues ,
Fair Labor Standards Act (FLSA) ,
Food Service Workers ,
Hospitality Industry ,
Minimum Wage ,
Regulatory Reform ,
Regulatory Standards ,
Restaurant Industry ,
Tip Credit ,
Tip-Pooling ,
Tipped Employees ,
Tips ,
Wage and Hour
The U.S. Department of Labor (DOL) has issued a proposed rule to rescind the Department’s position that employers must comply with tip-pooling requirements even when paying the full minimum wage. ...more
12/6/2017
/ Comment Period ,
Department of Labor (DOL) ,
Employer Liability Issues ,
Fair Labor Standards Act (FLSA) ,
Food Service Workers ,
Franchises ,
Minimum Wage ,
NPRM ,
Restaurant Industry ,
Tip Credit ,
Tip-Pooling ,
Tipped Employees ,
Wage and Hour
The U.S. Department of Labor (DOL) has issued a proposed rule to rescind the Department’s position that employers must comply with tip-pooling requirements even when paying the full minimum wage. ...more
12/5/2017
/ Department of Labor (DOL) ,
Employer Liability Issues ,
Fair Labor Standards Act (FLSA) ,
Food Service Workers ,
Franchises ,
Minimum Wage ,
NPRM ,
Public Comment ,
Restaurant Industry ,
Tip Credit ,
Tip-Pooling ,
Tipped Employees ,
Wage and Hour
The U.S. Court of Appeals for the Fifth Circuit concluded on June 14, 2016 that an employer may not deduct more than the actual credit card fees associated with liquidated credit card tips for employees without compromising...more