The practice of “tip-pooling,” which refers to the sharing of tips between “front-of-house” staff (servers, waiters, bartenders) and “back-of-house” staff (chefs and dishwashers), has been in the news recently as the Trump Department of Labor seeks to roll back a 2011 Obama-era rule limiting the practice under the Fair Labor Standards Act.
Continue Reading

Say an employee slips $20 from the register and even admits to it when you show the camera footage.  Or, more innocently, say an employee is overpaid $20 entirely by accident.  If the employee refuses to give it back, should you deduct the $20 from the employee’s paycheck? It depends.  Here are four questions to ask yourself. 
Continue Reading

Under a new DOL pilot program, employers can self-report wage violations and potentially avoid costly litigation.

Last week, the Wage and Hour Division of the U.S. Department of Labor launched a six-month pilot program to resolve FLSA violations.  Under the Payroll Audit Independent Determination program, employers may self-report potential overtime or minimum wage violations to the WHD, which will then resolve the matter by supervising payments to employees if the employees accept the settlement.
Continue Reading

On February 1, 2018, the United States District Court for the Eastern District of Pennsylvania dismissed an overtime class action suit brought on behalf of a group of former democratic campaign workers for their work during the 2016 presidential election.  In dismissing the overtime suit, the Court relied on an often-overlooked defense to the Fair Labor Standard Act.
Continue Reading

On January 8, 2018, the United States Supreme Court denied a petition for certiorari seeking to overturn the Fourth Circuit’s new joint employer test under the Fair Labor Standards Act.  As a result, employers will continue to be faced with differing joint employer standards in the various federal circuits.
Continue Reading

On Friday, January 5, 2018, the U.S. Department of Labor (“DOL”) posted a brief statement and updated its Fact Sheet on Internship Programs Under the Fair Labor Standards Act to clarify that going forward, it will use the “primary beneficiary” seven factor test for distinguishing bona fide interns from employees under the FLSA. 
Continue Reading

Earlier this month, the U.S. Department of Labor’s Wage and Hour Division issued a Notice of Proposed Rulemaking (“NPRM”) seeking to repeal a 2011 rule that significantly impacted the compensation of hospitality workers. Specifically, the NPRM proposes to allow hospitality employers to control the distribution of the tips they pool assuming their employees are paid the full minimum wage.
Continue Reading