A recent California appellate court decision has held that a banquet hall’s “mandatory service charge” could, under the right circumstances, be a “gratuity” that must be paid to employees under California Labor Code § 351.
Continue Reading California Appellate Court Rules that a Service Charge Could Be a Gratuity under the Labor Code

We recently highlighted DOL opinion letter 2018-27, which rescinded the 80/20 rule and was a welcome change for employers in the restaurant industry.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