Seyfarth Synopsis: Last week, the U.S. DOL issued a final rule limiting use of the FLSA’s tip credit for tipped employees who sometimes perform non-tipped work. Declining a more flexible approach advocated by many employers...more
Seyfarth Synopsis: If the gist of a proposed regulation is made final, the 80/20 rule will be back, and with a vengeance. Employers who take a tip credit for their tipped employees will have to ensure that those employees...more
Seyfarth Synopsis: Just before the holidays, the Department of Labor’s Wage-Hour Division issued its final pay regulations governing tipped employees. The final regulations, which were published December 22, 2020 and will...more
1/5/2021
/ Department of Labor (DOL) ,
Employer Liability Issues ,
Fair Labor Standards Act (FLSA) ,
Food Service Workers ,
Hospitality Industry ,
Minimum Wage ,
Restaurant Industry ,
Tip Credit ,
Tip-Pooling ,
Tipped Employees ,
Tips ,
Wage and Hour
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
1/18/2019
/ 20% Rule ,
Department of Labor (DOL) ,
Employer Liability Issues ,
Fair Labor Standards Act (FLSA) ,
Food Service Workers ,
Minimum Wage ,
Regulatory Standards ,
Restaurant Industry ,
Tip Credit ,
Tipped Employees ,
Tips ,
Wage and Hour
Seyfarth Synopsis: The DOL has reissued a long-awaited opinion letter withdrawing its previous 20% tip credit rule and making clear that “no limit is placed on the amount of [related but non-tipped] duties that may be...more
11/13/2018
/ Department of Labor (DOL) ,
Employer Liability Issues ,
Fair Labor Standards Act (FLSA) ,
Field Operations Manual ,
Food Service Workers ,
Hospitality Industry ,
Job Duties ,
Minimum Wage ,
Opinion Letter ,
Regulatory Reform ,
Restaurant Industry ,
Tip Credit ,
Tipped Employees ,
Tips ,
Wage and Hour
Seyfarth Synopsis: In an en banc decision, the Ninth Circuit reverses its prior panel opinion rejecting the DOL’s interpretation of FLSA regulations on use of the tip credit to pay regularly tipped employees, finding that the...more
10/2/2018
/ Department of Labor (DOL) ,
Employer Liability Issues ,
En Banc Review ,
Fair Labor Standards Act (FLSA) ,
Food Service Workers ,
Hospitality Industry ,
Minimum Wage ,
Regulatory Reform ,
Regulatory Standards ,
Restaurant Industry ,
Tip Credit ,
Tipped Employees ,
Tips ,
Wage and Hour
Seyfarth Synopsis: The Ninth Circuit has created a circuit split by rejecting the DOL’s interpretation of FLSA regulations on use of the tip credit to pay regularly tipped employees, finding that the interpretation is both...more
Seyfarth Synopsis: An unpopular DOL regulation that prohibits employers from retaining customer tips received another blow this summer. The Tenth Circuit joined the Fourth Circuit and several district courts in holding that...more
7/11/2017
/ Corporate Counsel ,
Department of Labor (DOL) ,
Employer Liability Issues ,
Fair Labor Standards Act (FLSA) ,
Minimum Wage ,
Popular ,
Restaurant Industry ,
Tip Credit ,
Tipped Employees ,
Tips ,
Wage and Hour
Seyfarth Synopsis: New decision from Northern District of Georgia rejects the DOL’s interpretation of the FLSA tip credit law. Holds that the FLSA does not regulate tips received by employees who are paid at least minimum...more
8/9/2016
/ Department of Labor (DOL) ,
Employer Liability Issues ,
Fair Labor Standards Act (FLSA) ,
Hospitality Industry ,
Minimum Wage ,
Restaurant Industry ,
Tip Credit ,
Tip-Pooling ,
Tipped Employees ,
Tips ,
Wage and Hour