On June 21, 2021, the U.S. Department of Labor (DOL) announced a new proposed rule related to when an employer may take a tip credit and pay a lower minimum wage to tipped employees performing so-called tipped and non-tipped duties. The proposed rule appeared in the Federal Register on June 23, 2021 and is open for public comment until August 23, 2021. The proposal shows employers the new road that President’s Biden’s administration is paving, which is a sharp turn away from the Trump administration’s approach.
The Fair Labors Standards Act (FLSA) allows employers to pay ...
Federal regulations have long provided that employees whose wages are subject to a tip credit must retain all tips they receive, with the exception that customarily tipped employees -- i.e. front-of the-house service employees -- are permitted to share in tips received.
In 2011, the U.S. Department of Labor (“DOL”) amended its tip regulations to limit tip pool participation to front-of-the-house employees regardless of whether a tip credit was applied to their wages.
Employers and hospitality industry advocacy groups reacted by filing lawsuits throughout the country ...
Blog Editors
Recent Updates
- The U.S. Department of Labor’s Final Rule Increasing the Salary Threshold for EAP Exemptions Took Effect, Except for the State of Texas as an Employer
- Plaintiffs in California Putative Class Action Lose Numerous Challenges to Enforcing Arbitration, Barring Unclean Hands
- California Governor’s PAGA Deal: What Employers Need to Know - Employment Law This Week
- Minimum Wage Increases (and Other Changes) Are Coming on July 1, 2024
- New Jersey Wage Theft Act Does Not Apply Retroactively, Per the State Supreme Court