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Employers with tipped employees are constantly trying to keep up with the ever-changing and evolving tip credit rules promulgated by the United States Department of Labor (DOL) — specifically, what is known as the 80/20 rule....more
In a highly anticipated decision published on August 23, 2024, the United States Court of Appeals for the Fifth Circuit struck down the Department of Labor’s (DOL) Final Rule that limited the circumstances under which an...more
A trio of cases before the United States Court of Appeals for the Fifth Circuit have challenged the core of US Department of Labor rulemaking. With varying levels of success. Restaurant Law Center v. DOL pertains to the DOL’s...more
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
Recent news of six-digit demands and lawsuits filed by the Department of Labor against multiple Oregon-based institutional restaurant chains has local businesses across the service industry wondering: “Are we tipping our...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 2021, the U.S. Department of Labor’s Wage and Hour Division issued new regulations dealing with the Fair Labor Standards Act’s tip credit. The tip credit allows employers to pay a $2.13 hourly minimum wage to tipped...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
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
On Friday, October 29, 2021, the Department of Labor (DOL) issued a final rule relating to wages of tipped employees. The rule aims to settle flip-flopping by different presidential administrations over the types of work...more
On October 28, 2021, the U.S. Department of Labor (DOL) issued a Final Rule establishing limits on the amount of time tipped employees can spend performing work that is not “tip- producing work” and still being paid at the...more
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
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
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
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
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