News & Analysis as of

Minimum Wage Tip-Pooling

Fisher Phillips

How Will the Election and Recent Legislative Trends Impact Tipped Wages? 4 Developments for Hospitality Employers to Watch

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There’s been a lot of buzz about tipped wages as Election Day approaches – and hospitality employers will want to track key proposals that may have a huge impact on pay practices. Former President Trump and Vice President...more

Fisher Phillips

Massachusetts High Court Clears Way for Ending the Tip Credit: What Do Bay State Restaurant Operators Need to Know?

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Massachusetts voters will decide this November whether employers may continue taking a “tip credit” and paying tipped employees below the state’s standard minimum wage. While restaurant industry representatives fought to keep...more

Fisher Phillips

Can Restaurant Hosts Share in the Tip Pool? Top 5 Questions for Employers that Take a Tip Credit

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Many restaurants utilize tip pools to encourage teamwork, consistency, and customer-focused service – but you may be confused about who can and can’t participate in the pool. You feel confident that your servers and...more

Fisher Phillips

Are You Properly Paying Your Bell Staff? 5 Top Questions for Hotels that Take a Tip Credit

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Hotel staff often include a mix of tipped and non-tipped jobs, but following wage and hour rules isn’t always easy, particularly if employees perform a variety of tasks. Some workers — such as servers and bartenders — may...more

Littler

Dear Littler: How Do Restaurants Without Table Service Handle Tips?

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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

CDF Labor Law LLP

CDF Wage and Hour Task Force Monthly Tips - “Tips on Tips”

CDF Labor Law LLP on

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

Epstein Becker & Green

Utah Expands Tip Pooling to Include Non-Tipped Employees

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On March 23, 2023, Utah Governor Spencer Cox signed into law Senate Bill 73 (“SB 73”) expanding the group of employees eligible for tip pooling by allowing employers to include non-tipped employees in a bona fide tip pooling...more

Fisher Phillips

Restaurant Owner Learns Dangers of Comingling Employees Between Locations – 4 Lessons for Hospitality Employers

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Federal wage officials recently announced that two Florida restaurants with common ownership failed to properly calculate overtime pay when their employees worked at both locations in the same workweek – sending a stark...more

Kohrman Jackson & Krantz LLP

The DOs and DON’Ts of the DOL’s New Tip Credit Rules

Employees in the service industry, such as bartenders and waitstaff, have come to rely on tips as a part of their hourly wages. In fact, most states specifically allow restaurants and bars to pay workers less than minimum...more

Steptoe & Johnson PLLC

Pennsylvania Updated Minimum Wage Regulations Take Effect This Friday

By Friday, August 5, Pennsylvania employers must ensure their wage and hour practices comply with the updated Pennsylvania minimum wage regulations. The new regulations address compensation calculations for tipped employees...more

Jackson Lewis P.C.

Pennsylvania’s New Requirements for Tipped and Salaried Employees: Common Questions

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The Pennsylvania Department of Labor and Industry has implemented new regulations under the Pennsylvania Minimum Wage Act (PMWA) that go into effect on August 5, 2022. The regulations make a number of important changes for...more

Mitchell, Williams, Selig, Gates & Woodyard,...

Tips, Tip Pooling, and Tip Credits: What is a Restaurant Legally Allowed to do with its Tips?

Employees in a restaurant setting often receive tips, and employers often take a “tip credit” toward the minimum wage that they have to pay (allowing the employer in Arkansas to pay $2.63/hour to the tipped employee if the...more

Bowditch & Dewey

Rhode Island Enacts “Tip Protection” Law

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On June 28, 2022, Rhode Island enacted new “tip protection” legislation. The law, which applies to all employers of tipped employees, prohibits employers from retaining employee tips, creates new requirements for tip pools,...more

Fisher Phillips

4 Reminders for Employers After a Texas BBQ Chain’s $900K Tip Pooling Mistake

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Employers in the restaurant and hospitality industries know it’s a common practice to ask workers to share gratuities. Tip pools can promote teamwork and a better customer experience – but they can also land you in hot water...more

Jackson Lewis P.C.

Pennsylvania Regulatory Commission Approves Expansive Tipped Employee Regulations

Jackson Lewis P.C. on

Bucking the standard that has existed under federal law and in most states for decades, tipped employees in Pennsylvania soon will have to earn more than four times as much in tips before their employers may take a tip credit...more

Fisher Phillips

Is Your Tip Credit A Ticking Time Bomb? An Employer’s 10-Step Wage and Hour Action Plan for 2022

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With the government’s final rules on the tips provisions of federal wage and hour law becoming effective just weeks ago, employers will be challenged with ensuring they have a plan to address the rules’ impact on their...more

Rivkin Radler LLP

New 2022 Minimum Wages and Minimum Salaries

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Minimum hourly wages for nonexempt employees and minimum salaries for exempt employees in New York State are scheduled to increase on January 1, 2022. Employers should begin to make plans to ensure that their hourly wages for...more

Akerman LLP - HR Defense

DOL’s Final Rule on Tipped Employees Takes Effect December 28th

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

Burr & Forman

Department of Labor Releases Final Rule for Tipped Employees

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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

FordHarrison

Restaurant Industry Alert: DOL Issues Final Rule Modifying Tip Sharing

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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

Akerman LLP - HR Defense

Tipped and Non-Tipped Work Back Under the Microscope

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

Parker Poe Adams & Bernstein LLP

Hospitality Employers Would Have to Rethink Assignments Based on New Tip Credit Interpretation

The seemingly never-ending battle over interpretation of the Fair Labor Standards Act’s tip credit provision took another turn Monday. The U.S. Department of Labor’s Wage and Hour Division issued proposed rules that would set...more

Ervin Cohen & Jessup LLP

DOL Proposes New Tip Credit Rule

On June 23, 2021, the U.S. Department of Labor published a Notice of Proposed Rulemaking to limit the amount of non-tip producing work that a tipped employee can perform when an employee is taking a tip credit.  ...more

Roetzel & Andress

Department Of Labor Considers Two Rules Regarding Tipped-Workers’ Wages

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The Department of Labor (DOL) has issued two proposed rules that seek to withdraw the Trump Administration rule regarding the lower minimum wage of $2.13 for tipped workers (the “Tip Rule”). The Trump Administration Tip Rule...more

DirectEmployers Association

OFCCP Week In Review: March 2021 #4

The DE OFCCP Week in Review (WIR) is a simple, fast and direct summary of relevant happenings in the OFCCP regulatory environment, authored by experts John C. Fox, Candee Chambers and Jennifer Polcer. In today’s edition, they...more

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