News & Analysis as of

Tip Credit Tipped Employees 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

Tonkon Torp LLP

The Service Industry Must Revisit Tipping Policies or Prepare to Pay Up

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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

Fisher Phillips

Jump On In: Five Steps to Set Up a Lawful Tip Pool in Kentucky

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Tipping is everywhere: the coffee shop, the florist, and even the dry cleaner! This booming tip culture has led many employers that may not have traditionally established a tip pool to consider using one to ease the impact of...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?

Littler on

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

Fisher Phillips

Can You Include Sushi Chefs — and Other Unique Positions — in Your Tip Pool? 5 Key Questions for Restaurateurs to Review

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Do you utilize a tip pool in your restaurant? If so, you are likely aware of the various rules on maintaining a valid, lawful tip pool under the federal Fair Labor Standards Act (FLSA) and applicable state laws. You surely...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

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

Fisher Phillips

The Road to Hell is Paved with Good Intentions: Top 7 Wage and Hour Mistakes for Hospitality Employers to Avoid

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Employers in the hospitality industry have been through it all in recent years – from the devastation of the pandemic to ongoing labor shortages to an impending recession. These challenges and dramatic changes have surely...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

Stevens & Lee

Pennsylvania Tipped Worker and Overtime Rules Take Effect August 5, 2022

Stevens & Lee on

On August 5, 2022, updated rules affecting tipped workers and salaried workers who work a fluctuating work schedule will go into effect. Below is a summary of these regulations:... ...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

Bowditch & Dewey on

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

Littler

Rhode Island Enacts New “Tip Protection” Law

Littler on

On June 28, 2022, Rhode Island Governor Daniel McKee signed new “tip protection” legislation. The statute prohibits employers of tipped employees from retaining employee tips, creates new requirements for tip pools, and sets...more

Jackson Lewis P.C.

Rhode Island Enacts Tip Law, Mirroring Aspects of the FLSA

Jackson Lewis P.C. on

Rhode Island has joined the list of states adopting laws governing the payment of tips. House Bill (HB) 7510, which is codified as Public Law 2022-245, mirrors nearly all tip-related aspects of the federal Fair Labor...more

Fisher Phillips

Jump In! Kentucky Tip Pools Just Got a Little Warmer for Restaurant Employers

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For years, Kentucky has been one of the few outlier states that further complicated tip pooling by requiring all tip pools to be voluntary. While federal regulations have flipped and flopped with the tide of the changing...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

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

Fisher Phillips

Feds Now Have Broader Authority to Assess Monetary Penalties for Tip Violations

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Federal labor officials just finalized a rule that broadens their ability to assess monetary fines against those business that commit wage and hour violations with regards to tip payments, a development several months in the...more

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