News & Analysis as of

Wage and Hour Tips 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

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

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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?

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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

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

Epstein Becker & Green

Utah Expands Tip Pooling to Include Non-Tipped Employees

Epstein Becker & Green on

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

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

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

Bowditch & Dewey

Rhode Island Enacts “Tip Protection” Law

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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

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

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

Burr & Forman on

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

Fisher Phillips on

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

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

Littler

Final Rule Affirms U.S. Department of Labor’s Power to Fine Businesses That Engage in Tip Theft

Littler on

The U.S. Department of Labor published a final rule on September 23, 2021 clarifying several amendments to section 3(m) of the Fair Labor Standards Act (FLSA) that concern tip pooling. The final rule reestablishes the DOL’s...more

Ballard Spahr LLP

USDOL Publishes Final Rule Regarding Monetary Penalties Against Employers for Tip Violations

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On September 23, 2021, the U.S. Department of Labor (DOL) published a final rule announcing when it will assess civil money penalties (CMPs) against employers who retain tips earned by their workers. Under the rule,...more

Akerman LLP - HR Defense

Tipped and Non-Tipped Work Back Under the Microscope

The old “80/20 rule” is back again for tipped workers under the latest proposed Final Rule issued by the Department of Labor (DOL) last month. Employers in the service industry, especially those employers who take a tip...more

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