While Department of Labor regulations interpreting the FLSA remain the primary source of employer guidance regarding the Act’s requirements, they are not necessarily the final word on what federal wage law requires. This is so even where they have been subject to “notice and comment,” triggering a higher level of judicial deference. A federal court
29 usc 203(m)
Federal Court In Georgia Rejects DOL Regulation, Rules FLSA Does Not Require That Employees Receiving Full Minimum Wage Retain All Tips
On July 26, 2016, Judge William S. Duffey of the United States District Court for the Northern District of Georgia issued a decision holding that an employer does not have to ensure tipped employees retain all of their tips if the company is not using the employee’s tips to satisfy part of the minimum wage…
Fifth Circuit Provides Guidance Regarding Occupations Which “Customarily And Regularly” Receive Tips
Attempting to provide clarity to a subject that is a regular source of litigation, the Court of Appeals for the Fifth Circuit has issued an extended, detailed analysis addressing the circumstances under which an employee’s position is “customarily and regularly” tipped for purposes of participating in a valid tip pool under 29 U.S.C. § 203(m).…
Joining Ninth Circuit, Fourth Circuit Rejects Cause of Action to Recover Gratuities Under FLSA When No Tip Credit Taken
In accordance with the Ninth Circuit and several other federal court rulings, the Court of Appeals for the Fourth Circuit yesterday held that an employee cannot bring a claim for wages based on allegedly misappropriated gratuities under the FLSA unless the employer used the tip credit set forth in 29 U.S.C. § 203(m). Trejo…
Florida Federal Court Holds Cashiers Are Proper Tip Pool Participants
The legality of a given employee’s participation in a tip pool under the FLSA turns on whether the participants are “Tipped employees” under 29 U.S.C. § 203(t). The specific question is whether they “engaged in an occupation in which [they] customarily and regularly receive[] more than $ 30 a month in tips.” A new decision…
Citing To Precedent, Nevada Federal Court Rejects FLSA Tip Claim Asserted By Workers Receiving Minimum Wage
A Nevada federal court’s decision is consistent with other recent federal court decisions holding that an employee has no claim for allegedly misappropriated gratuities under § 203(m) of the FLSA if no tip credit is taken and the employee receives the full minimum wage before tips, as the FLSA does not create a property right…
Following Woody Woo, Federal Court In Utah Rejects Employee Gratuity Claim Since No Tip Credit Taken
Joining several other recent federal court decisions, including a decision invalidating recently promulgated Department of Labor regulations purporting to address the issue, Judge Ted Stewart of the District of Utah has ruled that an employee has no claim for allegedly misappropriated gratuities under the FLSA unless the employer elected to take the tip credit…
Coyote Ugly Bouncers Proper Tip Pool Participants Due To Customer Interaction
Following a bench trial, Judge Aleta A. Trauger of the Middle District of Tennessee has ruled that bouncers at various Coyote Ugly saloons sufficiently interacted with saloon guests to validate their sharing in the tip pool. Stewart, et al. v. CUS Nashville, LLC, et al., M.D. Tenn., No. 11-cv-00342, 8/8/13.
In Stewart, Plaintiffs…
Restaurant Association Defeats Department of Labor, Invalidates 2011 Tip Regulations
In 2010, the Ninth Circuit held in Cumbie v. Woody Woo, Inc., that an employee’s property right to tips attaches under the FLSA only if the employer is taking a tip credit pursuant to 29 U.S.C. § 203(m). In response to this decision the Department of Labor passed widely discussed-regulations which, contrary to the decision…
Federal Court in Indiana Dismisses Claims Alleging Work Outside Of “Tipped Occupation” As Contrary To Law And Inadequately Pleaded
In a case defended by Jackson Lewis Wage Hour Practice Group Chair and former Wage and Hour Administrator Paul DeCamp, Judge Theresa Springmann of the Northern District of Indiana on Tuesday dismissed claims brought by a former server employed by an Indiana-based Applebee’s operator alleging the restaurant was not entitled to avail itself of…