News & Analysis as of

Restaurant Industry Employer Liability Issues Tips

Akerman LLP - HR Defense

A Tip for Employers With Tipped Employees — Stay on Top of the Ever-Changing Guidance on the 80/20 Rule!

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

Seyfarth Shaw LLP

Tips from Seyfarth: Opinion Update – Fifth Circuit Clarifies Scope of its Decision Vacating 80/20 Rule

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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

Falcon Rappaport & Berkman LLP

No Tax on Tips: Pragmatic Tax Proposal or Populist Tax Policy Nightmare?

Recently, both major-party presidential candidates have come out in favor of a “no tax on tips” proposals, though neither candidate has indicated how to implement one. There have been proposals from other legislators, though...more

Locke Lord LLP

The Fifth Circuit Strikes Down DOL’s Rule for Tipped Employees

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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

Littler

Michigan Supreme Court Clarifies Minimum Wage & Tipped Rates and Schedule for 2025 and Future Years

Littler on

On September 18, 2024, at the request of the State of Michigan and its attorney general, the Michigan Supreme Court clarified issues relating to future minimum wage rates and minimum cash wage rates for tip-credit employees...more

Cranfill Sumner LLP

Making it “Rein”: Fifth Circuit Looks to Roll Back Department of Labor Rulemaking Authority

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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

Littler

Littler Lightbulb: August Appellate Roundup

Littler on

This Littler Lightbulb highlights some of the more significant employment law developments in federal courts of appeal in the last month. Fifth Circuit Vacates DOL Tip Credit Rule...more

Vedder Price

Fifth Circuit Strikes Down U.S. Department of Labor Tip Credit Rule

Vedder Price on

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

Seyfarth Shaw LLP

Tips from Seyfarth: In a Major Win for Restaurants, Fifth Circuit Vacates DOL’s 80/20 Rule

Seyfarth Shaw LLP on

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

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

Seyfarth Shaw LLP

Argument Update: Fifth Circuit Panel Seems Poised to Vacate DOL’s 2021 80/20 Rule

Seyfarth Shaw LLP on

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

Ogletree, Deakins, Nash, Smoak & Stewart,...

2024 State and Major Locality Minimum Wage Updates

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

Pullman & Comley - Labor, Employment and...

Connecticut Restaurant Guidebook 2023 Edition Preview: Part One - CT TIP CREDIT 101

This post is part of a series of articles previewing the unique type of information and guidance contained in the Pullman & Comley Hospitality Team’s “Connecticut Restaurant Guidebook 2023 Edition.” Available to members of...more

Sheppard Mullin Richter & Hampton LLP

Washington D.C. Attorney General Offers Guidance for Restaurant Employers Amidst Spike in Service Fees

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

Seyfarth Shaw LLP

Tips from Seyfarth: Connecticut General Assembly Fails to Pass Tip Credit Elimination Bill

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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

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

Seyfarth Shaw LLP

Tips from Seyfarth: Challenge to DOL’s 80/20 Rule Likely to Head Back to the Fifth Circuit

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Seyfarth Synopsis: After a remand from the Fifth Circuit, a trial court has upheld the validity of the Department of Labor’s 2021 regulation codifying the 80/20 rule, raising the possibility of another appeal....more

Adams and Reese LLP

US DOL Wins Latest Battle in War with Restaurant Associations over the Tipped Employee “80/20” Rule

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In Restaurant Law Center et al. vs. US Department of Labor, Case 1:21-cv-01106-RP (W.D. Tex. July 6, 2023), the Texas Federal District Court granted summary judgment in favor of the DOL, upholding the DOL’s December 2021...more

Parker Poe Adams & Bernstein LLP

Federal Court Rejects Challenge to DOL Tip Credit Rule

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

FordHarrison

Texas Federal Court Stiffs Restaurant Industry on Efforts to Strike Down Department of Labor Regulation on Tip Credit Work

FordHarrison on

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

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

Littler

Legal Challenge to FLSA 80/20 Rule Returns to Texas Court

Littler on

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

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

Littler

D.C. Voters Pass Initiative 82, Phasing Out Tipped Minimum Wage by 2027

Littler on

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

Fisher Phillips

Food Delivery Apps Can Be Both a Blessing and a Curse for Restaurants: 5 Tips to Avoid a Tip Credit Landmine

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Restaurants’ reliance on food delivery apps soared during the pandemic because they provide a convenient way for customers to order from local restaurants and an easy solution for processing restaurant payments and sourcing...more

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