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Tip-Pooling Hospitality Industry Restaurant Industry

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

Parker Poe Adams & Bernstein LLP

Eleventh Circuit Confirms That Service Charges Are Not FLSA Tips

The tip wars between hospitality employers and employees continue unabated. Numerous lawsuits contend that restaurants and other employers wrongfully retain or require sharing of customer gratuities, as well as violate Fair...more

Tonkon Torp LLP

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

Tonkon Torp LLP on

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

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

Fisher Phillips

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

Fisher Phillips on

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

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

Fisher Phillips

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

Fisher Phillips on

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

Fisher Phillips

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

Fisher Phillips on

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

FordHarrison

Restaurant Industry Alert: DOL Issues Final Rule Modifying Tip Sharing

FordHarrison on

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

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

Jaburg Wilk

Tipping Points – DOL Issues New Opinions About Paying Tipped Employees

Jaburg Wilk on

Days before the January 20, 2021, presidential inauguration, the U.S. Department of Labor (DOL), under the outgoing administration, issued a flurry of new regulations, rules and opinion letters that could significantly impact...more

Ballard Spahr LLP

Not So Fast – DOL Suspends Final Rule on Regulations Regarding Tipped Employees

Ballard Spahr LLP on

Summary - On January 26, 2021, the U.S. Department of Labor (DOL) suspended a Final Rule on tipped employees that it previously had announced on December 22, 2020. The Final Rule clarified tip pooling for employees in the...more

Parker Poe Adams & Bernstein LLP

U.S. Labor Department Adopts Final Tip Credit Regulations

On December 22, the U.S. Department of Labor’s Wage and Hour Division issued final regulations effective February 21, 2021, implementing changes to its policies regarding tipped employees. The rules expand circumstances under...more

Seyfarth Shaw LLP

DOL Issues New Tip Regulations: Will 2020 Be The Last Year Of 80/20?

Seyfarth Shaw LLP on

Seyfarth Synopsis: Just before the holidays, the Department of Labor’s Wage-Hour Division issued its final pay regulations governing tipped employees. The final regulations, which were published December 22, 2020 and will...more

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

2021 State Minimum Wage Increases

Several states’ minimum wage rates will increase in 2021. The following chart lists the state (and certain major locality) minimum wage increases for 2021 - and future years, if available - along with the related changes in...more

Parker Poe Adams & Bernstein LLP

Fourth Circuit Reminds Employers the Commissioned Worker Exemption Does Not End Tip Pooling Claims

Hospitality industry employers continue to battle with employees over the proper calculation and distribution of tips under the Fair Labor Standards Act. Last month, the Fourth Circuit Court of Appeals (which includes North...more

Nilan Johnson Lewis PA

Minnesota Restaurateurs: 5 Steps to Take Now to Avoid a Tip-Pooling Class-Action Lawsuit

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Plaintiffs’ lawyers are exploiting Minnesota’s confusing tip-pooling laws to bring class-action lawsuits against restaurateurs. These cases entail substantial costs, both in defending them and in potential damages....more

Nilan Johnson Lewis PA

Minnesota Restaurateurs: Fix Your Tip Pools Before You're Hit with a Tip-Pooling Class Action Lawsuit

Restaurants are getting hit with tip-pooling class action lawsuits. Now is the time to audit your practices, or, at the very least, review your tip pooling policies. This is especially important for Minnesota restaurateurs,...more

Bricker Graydon LLP

Changes in store for tipped employees: DOL proposes host of new tip regulations

Bricker Graydon LLP on

On October 8, 2019, the U.S. Department of Labor (DOL) proposed changes to the Fair Labor Standards Act (FLSA) regulations governing the wages of tipped employees, specifically, tip credits and tip pools....more

Parker Poe Adams & Bernstein LLP

U.S. Labor Department Proposes Rules to Expand Use of Tip Pools

Last year, Congress amended the Fair Labor Standards Act to clarify circumstances under which employers can require employees who receive tips to share (or pool) those gratuities with other employees. Last Tuesday, the...more

FordHarrison

Department of Labor Deflates the 80/20 Rule & Inflates the Tip Pool

FordHarrison on

On Monday, October 7, 2019, the Department of Labor (DOL) proposed a new 80/20 rule and tip pooling regulation. First, the proposed regulation, if finalized, will permit employers to take a tip credit regardless of the...more

Epstein Becker & Green

U.S. DOL Announces Proposed New Rule on Tip Credits and Pooling

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Rules relating to tip credit and pooling have resulted in significant debate among legislators, regulators, and the courts, leading to confusion, further litigation, and, in many cases, substantial liability or settlements...more

Fox Rothschild LLP

New Labor Regulation Would Allow Nontraditional Tip Pooling

Fox Rothschild LLP on

The U.S. Department of Labor has proposed a new rule to allow employers who do not take a tip credit to establish “nontraditional” tip pools that include back-of-the-house employees and others who are not traditionally...more

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