Tag Archives: tip credit

Federal Legislation To Decrease FLSA Tip Credit Proposed

Last Thursday, Donna Edwards (D-MD) introduced a bill to the House of Representatives which would increase the tip credit minimum wage for the first time since 1991.  The Working For Adequate Gains For Employment In Services Act (WAGE Act) would increase the tip credit minimum wage to $3.75/hour under federal law, with subsequent increases culminating … Continue Reading

Southern District of New York Judge Ratifies Legality of Participation in Tip Pool By Captains and Banquet Coordinator

While the New York State Department of Labor’s new Hospitality Industry Wage Order clarified many wage and hour issues for industry employers, the appropriateness of tip pool participation of certain categories of employee continues to be an area of uncertainty. On January 13, 2011, Federal District Judge Laura Taylor Swain granted summary judgment to Manhattan restaurant … Continue Reading

New York Hospitality Wage Order Goes Final: New Rules Effective 1/1/11

Yesterday, the New York State Department of Labor issued the final version of the new Hospitality Industry Wage Order, as previously discussed here and here. The final Wage Order, substantially revises various long-standing New York industry rules, including, the tip credit amount, permissibility of tip pooling, and spread of hours calculations. The Final Wage Order includes only … Continue Reading

New York’s Consolidated Hospitality Industry Wage Order: Status?

As previously reported in detail here, in November 2009 then-New York Commissioner of Labor Patricia Smith issued an Order accepting the 2009 Restaurant and Hotel Industry Wage Board’s recommendation to consolidate and modify the Wage Orders currently in effect covering New York restaurant and hotel industry employers. The Department however has yet to issue the proposed … Continue Reading

The 20% Rule For Tipped Employees – Eighth Circuit Invited to Decide Whether To Adopt USDOL Position

In the food service industry, an employer can take a tip credit against the minimum wage for customarily tipped employees, such as servers, bus persons and bartenders.  Under federal law, a restaurant can pay employees holding such positions $2.13 per hour, rather than $7.25 per hour, as long as the employees receive sufficient tips to … Continue Reading

How Broad is the Ninth Circuit’s Woody Woo Decision?

The Ninth Circuit Court of Appeals recently ruled that the FLSA does not restrict employer-mandated tip-pooling arrangements when no tip credit is taken by the employer against the minimum wage obligation.  Cumbie v. Woody Woo, Inc., et al., No. 08-35718 (9th Cir. Feb. 23, 2010).  Further, the Court rejected the DOL’s regulation at 29 C.F.R. … Continue Reading

New York State Wage Board Approves Revised Hospitality Industry Wage Order

The following report is sent to us from Richard I. Greenberg and Felice B. Ekelman The New York Department of Labor’s 2009 Restaurant and Hotel Industry Wage Board has submitted its Report and Recommendations to consolidate the individual wage orders for the restaurant and hotel industries into a single Hospitality Industry Wage Order.  Commissioner of … Continue Reading

Jackson Lewis Partner Paul DeCamp Featured in Employment Law 360

In today’s Employment Law 360 (subscription required), Jackson Lewis partner and leader of the Firm’s Wage and Hour Practice Group offered his thoughts on a variety of wage and hour-related topics, including what he sees as the next wave of wage and hour cases: These days, the plaintiffs’ bar is very focused on uncompensated increments … Continue Reading