We recently highlighted DOL opinion letter 2018-27, which rescinded the 80/20 rule and was a welcome change for employers in the restaurant industry.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.
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Tip Credit
DOL “Tips” the Scale in Favor of Restaurant Employers by Ending 20% Tip Credit Rule
By Cullan E. Jones & M. Brett Burns on
Posted in Class Actions
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.
DOL Expresses Interest in Banning “Tip-Skimming”
By Michael Reed & Ryan A. Glasgow on
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.…
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Tenth Circuit Holds That Employers May Sometimes Keep Tips
By Hunton & Williams LLP on
Posted in Employment Policies, Equal/Fair Pay
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.…
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