News & Analysis as of

Tips Fees

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

Goodwin

Wisconsin Becomes Third State to Enact Law Regulating Earned Wage Access Services

Goodwin on

Following Nevada and Missouri in 2023, Wisconsin has become the third state (and the first in 2024) to enact a law that establishes a financial services oversight regime for earned wage access services, also known as...more

Troutman Pepper

Maryland Issues Guidance on Earned Wage Access Products

Troutman Pepper on

On August 1, Maryland’s Office of Financial Regulation (OFR) issued guidance to “provide clarity on how [the OFR] views Earned Wage Access [EWA] products and to describe the requirements entities offering these products must...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

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

Eleventh Circuit: Service Charges Are Wages, Not Tips, Under FLSA

On March 18, 2022, the Eleventh Circuit Court of Appeals ruled in Compere v. Nusret Miami, LLC, a collective action under the Fair Labor Standards Act (FLSA), that Nusr-et Steakhouse properly used automatically charged fees...more

Stradling Yocca Carlson & Rauth

Are Your Website and Mobile Application Compliant With Consumer Protection Laws?

In this client alert, I discuss two lawsuits that were recently filed by the District of Columbia Attorney General (“D.C. AG”) against food delivery company DoorDash and grocery delivery service Instacart.  In particular, I...more

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

Second Circuit Holds “Delivery Fee” Is Not a Gratuity for Delivery Drivers

In a 5-page summary order issued on March 5, 2020, the U.S. Court of Appeals for the Second Circuit held in Belizaire v. Ahold U.S.A., Inc., No. 19-457-cv, that the “delivery fee” paid by customers of Peapod LLC, a grocery...more

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