Employers of tipped workers need to start exploring how their pay and timekeeping policies may need to change once a new rule from the U.S. Department of Labor (DOL) is finalized.
Tag: tip credit
During the Trump administration, the U.S. Department of Labor (DOL) issued guidance governing tipped employees, providing long-awaited clarification on wage and hour issues such as (1) when nontipped employees can share in a mandatory tip pool, (2) what constitutes wrongfully “keeping” an employee’s tips, and (3) when employers may take a tip credit. The regulations […]
Employers in industries where tips are the norm are likely to welcome the U.S. Department of Labor’s (DOL) new proposed rule relating to tipped workers. Although the proposal, announced on October 7, 2019, just codifies current guidance from the DOL’s Wage and Hour Division, it formally does away with Obama-era guidance that sometimes limited employers’ […]
Two recent decisions from the U.S. 10th Circuit Court of Appeals—which covers Colorado, Kansas, New Mexico, Oklahoma, Utah, and Wyoming—provide new guidance for employers with tipped employees.
In a recent decision, Florida Federal District Judge James Moody upheld the U.S. Department of Labor’s (DOL) rule that a tipped employee may be paid a direct wage that is less than the Florida minimum wage of $8.10 per hour only if he spends no more than 20% of his time on duties that do […]
Most restaurants take advantage of the tip credit authorized by federal and Maryland wage and hour law when compensating their servers. If used correctly, the tip credit allows an employer to reduce its labor costs by applying tips earned by employees as a partial credit against the minimum wage they would otherwise be paid for […]
In this article series, we provide a refresher on the basics of the Fair Labor Standard Act’s (FLSA’s) requirements. In our previous article, we explained FLSA’s minimum wage provisions and a few exemptions. In this article, we discuss how they apply to tipped employees and piece-rate workers.
If your business employs workers who receive tips as part of their compensation, such as waitstaff, bartenders, or delivery drivers (e.g., pizza delivery drivers), a separate set of rules governs how you compensate them.
The U.S. Supreme Court may soon decide whether employers can collect workers’ tips and redistribute them to nontipped employees. Federal regulations currently prohibit this practice but industry groups say the Obama administration overstepped its authority with that rule.
By Tom Harper, The Law and Mediation Offices of G. Thomas Harper, LLC