Recently, in Restaurant Law Center, et al. v. U.S. Dep’t of Labor, the U.S. District Court for the Western District of Texas affirmed the validity of a new Department of Labor (DOL) rule, known as the “80-20-30” or “dual jobs” rule, which limits the ability of employers to satisfy a portion of tipped employees’ wages with earned tips.
Continue Reading Texas Federal Court Upholds DOL Rule Attacking FLSA Tip Credit
Voters in the District of Columbia, Nebraska, and Nevada overwhelmingly approved minimum wage-related ballot initiatives during this year’s midterm elections. The political movement to establish a $15.00 minimum wage started in 2012 when 200 New York City fast food workers walked off the job demanding better pay and union rights. Despite inaction by the federal government in the subsequent decade, there continues to be bipartisan support for minimum wage increases, particularly at the state level, as illustrated by the success of these three ballot measures.
Continue Reading D.C., Nebraska, and Nevada Voters Approve Minimum Wage Increases
This month, the Southern District of Florida declined to certify a nationwide class of Denny’s servers alleging the restaurant chain had violated the minimum wage and tip credit provisions of the Fair Labor Standards Act on the basis that the named plaintiff failed to provide enough evidence that the servers were similarly situated.
Continue Reading Proposed Nationwide Class of Denny’s Restaurant Servers Denied Certification in FLSA Action
We recently highlighted DOL opinion letter 2018-27, which rescinded the 80/20 rule and was a welcome change for employers in the restaurant industry. However, less than two months after the DOL’s policy change, the U.S. District Court for the Western District of Missouri rejected the DOL’s new guidance, claiming it is “unpersuasive and unworthy” of deference.
Continue Reading Federal Court “Tips” the Scale in Favor of Restaurant Workers by Reviving 80/20 Rule
The Department of Labor recently published an Opinion Letter (FLSA-2018-27) reissuing its January 16, 2009 guidance (Opinion Letter FLSA-2009-23) and reversing its Obama-era position on the 20% tip credit rule. This opinion letter marks another major shift in DOL’s policy and presents a welcome change for employers in the restaurant industry.
Continue Reading DOL “Tips” the Scale in Favor of Restaurant Employers by Ending 20% Tip Credit Rule
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 DOL Expresses Interest in Banning “Tip-Skimming”
The United States Court of Appeals for the Tenth Circuit recently held in Marlow v. The New Food Guy, Inc. that an employer that pays its employees a set wage over the minimum wage can retain tips for itself and does not have to share them with employees.
Continue Reading Tenth Circuit Holds That Employers May Sometimes Keep Tips