News & Analysis as of

Hospitality Industry Minimum Wage

Davidoff Hutcher & Citron LLP

Understanding Spread of Hours Pay: Compliance Guide for New York Restaurant Owners

Long days and double shifts are common in the restaurant business. As a New York restaurant owner, it’s crucial to understand the “spread of hours” rule – a unique state requirement that can catch employers off guard. This...more

Davidoff Hutcher & Citron LLP

Tip Pooling and Tip Credit Compliance: A Guide for New York Restaurant Owners

New York restaurant owners must navigate complex tip pooling and tip credit regulations to ensure compliance with federal and state labor laws. Failure to follow these rules can result in lawsuits, back wages, and penalties....more

Mandelbaum Barrett PC

Tip Credit in New Jersey: What Bill A-5433 Means for Restaurants and Workers

Mandelbaum Barrett PC on

As the New Jersey legislature considers eliminating the tip credit—a move that would require all restaurant workers to be paid the full minimum wage regardless of tips—the hospitality and business communities are pushing...more

Fisher Phillips

Where Do We Stand? An Action Plan for Employers on Tip Credit Compliance and the 80/20 Rule

Fisher Phillips on

Many employers in hospitality and other service industries take the tip credit toward their minimum wage obligation under federal wage and hour law – but complying with evolving rules has been challenging in recent years....more

Ogletree, Deakins, Nash, Smoak & Stewart,...

New Jersey Bill to Eliminate Minimum Wage Tip Credit Will Impact Hospitality Industry

New Jersey stands at a crossroads regarding the compensation of tipped workers. Introduced on March 10, 2025, Assembly Bill A5433 proposes a significant change to the New Jersey Wage and Hour Law: phasing out the “tip...more

Seyfarth Shaw LLP

Olympic Sized Wages: LA City Council Takes Next Steps on “Olympic Wage” Ordinance

Seyfarth Shaw LLP on

The 2028 Los Angeles Olympics is already bringing change to the city. On December 11, 2024, the Los Angeles City Council voted 12-3 to approve a draft ordinance to amend the Living Wage Ordinance and the Hotel Worker Minimum...more

Fisher Phillips

Labor Department Withdraws Onerous 80/20/30 Tip Credit Rule: 5 Practical Tips for Employers

Fisher Phillips on

If you take the tip credit for employees that receive gratuities, you’ll want to review your policies and practices in light of Monday’s game-changing announcement from the U.S. Department of Labor (DOL). The Department...more

Jackson Lewis P.C.

DOL Returns to Pre-2021 Dual Jobs Regulation for Tipped Employees

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The U.S. Department of Labor (DOL) published a final rule on Dec. 17, 2024, restoring the pre-2021 language of the “dual jobs” regulation for tipped employees under the Fair Labor Standards Act (FLSA). This is a technical...more

Littler

From Traffic to Tourism: Los Angeles Seeks to Hike Wages Ahead of the Olympics

Littler on

On December 11, 2024, the Los Angeles City Council voted to approve a draft ordinance proposal to increase the minimum wage in the tourism industry ahead of the 2028 Los Angeles Olympics. This proposal was seemingly approved...more

Hinshaw & Culbertson - Employment Law...

The 12 Days of California Labor and Employment Series – Day 10 "Minimum Wage Updates"

In the spirit of the season, we are using our annual "12 Days of California Labor and Employment" blog series to address new California laws and their impact on employers. On the tenth day of the holidays, my labor and...more

Ervin Cohen & Jessup LLP

LA City Council Approves $30 Minimum Wage for Hotel and LAX Workers

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After a contentious six-hour meeting, the Los Angeles City Council voted 12-3 in favor of increasing the hourly wage of approximately 23,000 hotel and LAX workers to $30. The $30 minimum wage will go into effect in by July...more

Akerman LLP - HR Defense

A Tip for Employers With Tipped Employees — Stay on Top of the Ever-Changing Guidance on the 80/20 Rule!

Employers with tipped employees are constantly trying to keep up with the ever-changing and evolving tip credit rules promulgated by the United States Department of Labor (DOL) — specifically, what is known as the 80/20 rule....more

Fisher Phillips

From Cannabis to Minimum Wage and Beyond: How Did Workplace Law Issues on State Ballots Fare This Election Day?

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Voters decided more than just who would be the next President and who would be in Congress this Election Day – they also voted on a slew of state ballot measures that aimed to change your workplace. Here’s a recap of the most...more

Fisher Phillips

Top 10 Workplace Law Developments To Expect Under President Trump

Fisher Phillips on

Now that we know Donald Trump will return to the White House as President, it’s time for employers to take a look at what they might expect during his second term in office. We have gathered insights from some of our firm’s...more

Paul Hastings LLP

California Ushers in a New Wave of Employment Laws, Effective Next Year

Paul Hastings LLP on

Signing off on a busy legislative year, Governor Newsom just confirmed into law over a dozen bills from the California Legislature. As a result, many California employees will begin next year with new and enhanced rights...more

Littler

Littler Lightbulb: August Appellate Roundup

Littler on

This Littler Lightbulb highlights some of the more significant employment law developments in federal courts of appeal in the last month. Fifth Circuit Vacates DOL Tip Credit Rule...more

Fisher Phillips

How Will the Election and Recent Legislative Trends Impact Tipped Wages? 4 Developments for Hospitality Employers to Watch

Fisher Phillips on

There’s been a lot of buzz about tipped wages as Election Day approaches – and hospitality employers will want to track key proposals that may have a huge impact on pay practices. Former President Trump and Vice President...more

Fisher Phillips

Workplace Law Update: 10 Essential Items on Your September To-Do List

Fisher Phillips on

It’s hard to keep up with all the recent changes to labor and employment law, especially since the law always seems to evolve at a rapid pace. In order to ensure you stay on top of the latest changes and have an action plan...more

Whiteford

Employment Law Update: The Tip Credit is Back

Whiteford on

Hospitality employers take note – the Department of Labor’s (DOL) tip rule has been struck down. The tip credit is a provision of the Fair Labor Standards Act (“FLSA”) that allows employers to pay tipped employees a lower...more

Vedder Price

Fifth Circuit Strikes Down U.S. Department of Labor Tip Credit Rule

Vedder Price on

In a highly anticipated opinion, on August 23, 2024, the Fifth Circuit in Restaurant Law Center v. U.S. Department of Labor (Case No. 23-50562) struck down a Final Rule promulgated by the U.S. Department of Labor (DOL) that...more

Benesch

Federal Court Strikes Down Tip Credit Rule Promulgated by the DOL

Benesch on

On August 23, 2024, the Fifth Circuit Court of Appeals struck down a final rule promulgated by the Department of Labor (“DOL”) restricting when employers could take a tip credit for tipped employees under the Fair Labor...more

Jackson Lewis P.C.

Fifth Circuit Strikes Down DOL Tip Credit Rule: What It Means for Employers

Jackson Lewis P.C. on

In a long-awaited decision, the Department of Labor (DOL) regulation setting strict limits on the amount of time that tipped employees can spend performing work that does not directly generate tips has been struck down by the...more

Franczek P.C.

5th Circuit Strikes Down 2021 Tip Rule

Franczek P.C. on

On August 23, 2024, the Fifth Circuit Court of Appeals struck down a 2021 regulation by the U.S. Department of Labor restricting employers’ use of the tip credit for tipped employees under the Fair Labor Standards Act. The...more

Epstein Becker & Green

MI Agencies Request Clarity on New Minimum Wage & Tip Credit Requirements

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On August 22, 2024, the Michigan Department of Labor & Economic Opportunity (LEO) issued a press release on the heels of the Mothering Justice decision, about which we previously wrote, and which will drastically change the...more

Fisher Phillips

Appeals Court Strikes Down Onerous 80/20/30 Tip Credit Rule: 7 Things Hospitality Employers Should Know About This Win

Fisher Phillips on

A federal appeals court just delivered some good news to hospitality employers by blocking the Department of Labor’s infamous 80/20/30 rule, providing immediate relief to employers around the country by vacating the...more

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