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We recently highlighted DOL opinion letter 2018-27, which rescinded the 80/20 rule and was a welcome change for employers in the restaurant industry.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”