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Tipped Employees Appeals Tip Credit

Fisher Phillips

Appeals Court Strikes Down Onerous 80/20/30 Tip Credit Rule: 7 Things Hospitality Employers Should Know About This Win

Fisher Phillips on

A federal appeals court just delivered some good news to hospitality employers by blocking the Department of Labor’s infamous 80/20/30 rule, providing immediate relief to employers around the country by vacating the...more

Steptoe & Johnson PLLC

Federal Court to Reexamine Merits of a Nationwide Injunction to Tip Credit Rule

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On April 28, 2023, the U.S. Court of Appeals for the Fifth Circuit found that enforcing the Department of Labor’s (DOL) tip credit rule could cause irreparable harm to restaurants and other employers with tipped employees....more

Parker Poe Adams & Bernstein LLP

Appeals Court Reopens Door for Injunction to Stop the New Tip Rule

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

Parker Poe Adams & Bernstein LLP

Full Ninth Circuit Defers to DOL's Interpretation of Payment for Non-Tipped Work

Employers in the hospitality industry continue to face class and collective action lawsuits based on alleged violations of minimum wage requirements for tipped workers. Most of this litigation involves interpretation of the...more

Laner Muchin, Ltd.

Recent Ninth Circuit Decision Highlights An Employer’s Obligation Under the Dual Jobs Regulation Of The FLSA

Laner Muchin, Ltd. on

On September 18, 2018, the Ninth Circuit Court of Appeals issued a decision which once again brings to the forefront employers’ obligations under the Fair Labor Standards Act (FLSA) and other state minimum wage laws....more

Fisher Phillips

Serenity Now – Looking Back On USDOL's Actions Mid-Year, And A Sneak Peek At What Might Be Coming

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We are almost half way through 2018, and this year has been filled with fast and furious changes at USDOL. Proposed tip credit changes (Check, including a reaction from Congress and more tip credit changes on the horizon)....more

Foster Garvey PC

The Tip Pooling Saga: What Employers Need to Know with Tip Pooling Being Legal Once Again

Foster Garvey PC on

Just when it seemed that service charges were all the rage, tip pooling has reemerged to grab the headlines. Making the rounds from courts to agencies, and now Congress, the issue appears to have been settled by Congress that...more

Fisher Phillips

Here's a Tip: Tread Carefully

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As we previously wrote, Congress has now amended Section 3(m) of the federal Fair Labor Standards Act (FLSA) to prohibit an employer from "keep[ing] tips received by its employees for any purpose, including allowing managers...more

Parker Poe Adams & Bernstein LLP

Ninth Circuit Agrees to Reconsider Tip Credit Case

For employers in the hospitality industry, tipping policies continue to pose significant litigation risks. A number of restaurant groups have faced recent class and collective action claims based on allegations that the...more

Foley & Lardner LLP

Ninth Circuit Deviates from Guidance and Other Authority on Tip Credits

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We have previously discussed how the Department of Labor (DOL) often issues guidance to assist employers in applying and complying with the DOL’s various regulations. The federal courts generally follow this guidance when...more

Holland & Knight LLP

Hospitality Employers Beware: Confusion of the Use of the Tip Credit Persists

Holland & Knight LLP on

• The Ninth Circuit recently rejected federal Department of Labor (DOL) interpretive guidance that banned employers from using the federal tip credit for time spent on non-tip-generating activities if those tasks exceed 20...more

Fisher Phillips

Valet Driver's FLSA Tip Claim Fails

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In a welcome decision for employers, the Eleventh Circuit U.S. Court of Appeals (having jurisdiction over Alabama, Florida, and Georgia) recently ruled that a tipped employee for whom no federal Fair Labor Standards Act "tip...more

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