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Tipped Employees Service Charges

Fisher Phillips

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

Fisher Phillips on

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

Fox Rothschild LLP

Service Charge vs. Gratuity and Why It Matters Revisited

Fox Rothschild LLP on

Back in 2019, I posted about the difference between a Service Charge, an Automatic Gratuity, and a Gratuity/Tip. I explained that a service charge is typically a set amount added to a guest check in lieu of a tip. An...more

Jackson Lewis P.C.

Washington Releases Draft Policy on Tips, Gratuities, and Service Charges

Jackson Lewis P.C. on

The Washington State Department of Labor & Industries (L&I) released a draft administrative policy regarding tips, gratuities, and service charge requirements for employers. The new policy, titled “Tip, Gratuity, and Service...more

Fisher Phillips

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

Fisher Phillips on

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

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

Fisher Phillips

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

Fisher Phillips on

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

Service Charges Could Be Solution to Tip Credit Challenges: An Employer’s 6-Step Guide

Fisher Phillips on

Hospitality employers who utilize the “tip credit” under federal wage and hour law may feel as if they operate with a bullseye on their backs given the multi-prong assault underway against the practice. Not only are you in...more

Bowditch & Dewey

“What’s in a Name?” Potentially, Treble Damages! A Look at the Massachusetts Tips Act

Bowditch & Dewey on

When writing his famous line in Romeo and Juliet, Shakespeare clearly was not thinking of the Massachusetts Tips Act. The Supreme Judicial Court (SJC) recently issued a reminder that, in fact, a name can be critical to...more

Jackson Lewis P.C.

Service Charge Or Administrative Fee? A Distinction With A Difference, The Supreme Judicial Court Of Massachusetts Holds

Jackson Lewis P.C. on

Although it may have intended for a customer charge to be treated as an administrative overhead fee separate from gratuities paid to its employees, a country club’s reference to the amount as a “service charge” in some...more

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

Massachusetts Supreme Judicial Court Addresses ‘Service Charges’ Under the Massachusetts Tips Act

Massachusetts is seeing an increase in Tips Act claims, and the Massachusetts Supreme Judicial Court (SJC) just reinforced that a lack of clarity in fee- and tip-related documentation may result in employer liability,...more

Jackson Lewis P.C.

Mandatory Gratuities Are Not “Tips” But May Qualify As Commissions Under The FLSA, Fourth Circuit Holds

Jackson Lewis P.C. on

Agreeing with the district court, the Court of Appeals for the Fourth Circuit has concluded that the mandatory service charges imposed by a restaurant on dining parties of six or more were not “tips” under the FLSA. However,...more

Foster Garvey PC

Tom Douglas Settlement Highlights a $2.4 Million Technicality: Three Steps to Help Avoid Potential Costly Litigation Related to...

Foster Garvey PC on

A recent settlement between Seattle chef Tom Douglas and his restaurant employees highlights the potentially costly technical requirements of Washington’s automatic service charge laws for hospitality businesses. ...more

Ervin Cohen & Jessup LLP

Tips, Service Charges & Automatic Gratuities and Why You Should Care

Most employers are familiar with the basics. A tip is a voluntary amount of money a guest leaves for an employee over the amount due for the goods sold or services rendered. ...more

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