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Hospitality employers take note – the Department of Labor’s (DOL) tip rule has been struck down. The tip credit is a provision of the Fair Labor Standards Act (“FLSA”) that allows employers to pay tipped employees a lower...more
In a highly anticipated opinion, on August 23, 2024, the Fifth Circuit in Restaurant Law Center v. U.S. Department of Labor (Case No. 23-50562) struck down a Final Rule promulgated by the U.S. Department of Labor (DOL) that...more
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 (“DOL”) December 2021 final rule that had set strict limits on...more
On August 23, 2024, the Fifth Circuit Court of Appeals struck down a final rule promulgated by the Department of Labor (“DOL”) restricting when employers could take a tip credit for tipped employees under the Fair Labor...more
In a long-awaited decision, the Department of Labor (DOL) regulation setting strict limits on the amount of time that tipped employees can spend performing work that does not directly generate tips has been struck down by the...more
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
Almost half of the states, and several major localities, will increase their minimum wage rates in 2024, with a majority of the changes effective on January 1, 2024. The table below lists state and certain major locality...more
Governor Kathy Hochul signed into law in May increases to New York’s minimum wage that will occur over the next few years. The first increase is set to take effect on January 1, 2024. Additional increases to the minimum wage...more
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
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
On Wednesday July 19, 2023, the Chicago City Council introduced legislation to eliminate the city’s “tip credit” over a two-year period (if passed), in an effort to raise the city’s current hourly minimum wage rate for tipped...more
In recent years, persons or groups unhappy about a new federal law or regulation have chosen to file suit in a selected federal district court, often in Texas, seeking a nationwide injunction to prohibit the new measure from...more
Executive Summary: On July 6, 2023, a federal district court upheld the U.S. Department of Labor’s (DOL’s) regulations on the type and amount of work that tipped employees may perform while being paid the reduced minimum wage...more
In the restaurant/service industry, gratuities (To Ensure Prompt Service or “tips”) motivate individuals to seek employment. Everywhere you turn, even if you did not receive any real service, workers are seeking tips....more
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
Gratuities are often helpful for both employees and their employers: tips supplement a worker’s income, and federal law and the laws of most states allow employers to credit a portion of a worker’s tips toward the company’s...more
Minimum hourly wages for many nonexempt employees and minimum salaries for exempt employees in New York, New Jersey and Connecticut are scheduled to increase in 2023. Employers should begin to make plans to ensure that their...more
On November 8, 2022, Washington D.C. voters overwhelmingly passed Initiative 82 or the “District of Columbia Tip Credit Elimination Act.” As a result, the tip credit for D.C. tipped wage workers will be gradually phased out...more
On November 8, 2022, Washington, D.C. voters approved Initiative 82, which will eliminate the ability of employers in the city to rely on a tip credit to meet the minimum wage requirement for employees who regularly receive...more
In 2020, Florida voters 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 minimum wage to...more
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
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
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
On October 28, 2021, the U.S. Department of Labor (DOL) announced a new rule, effective December 28, 2021, that limits the amount of time tipped employees can spend on non-tipped activities when the employer receives a tip...more