In recent years, one significant issue that has plagued industries employing tipped employees is whether the employers must ensure that tipped employees retain all of their tips even if the company is not using the employee’s tips to satisfy part of the minimum wage pursuant to the FLSA’s “tip credit” provision, 29 U.S.C. § 203(m).
tip sharing
Maximizing The Use Of The “Chain Of Service” Doctrine To Defend Claims
By Noel P. Tripp on
Posted in Tips
In cases challenging participation of food service workers other than the quintessential roles with which most diners are familiar (e.g., server/waiter, busboy, etc.) in tip sharing/pooling/splitting arrangements, some courts focus on whether the position lacked sufficient direct customer interaction to warrant receipt of tips. See generally Kilgore v. Outback Steakhouse, 160 F.3d…
Nevada Supreme Court Okays Tip Pooling
By Noel P. Tripp on
Providing guidance on some longstanding ambiguity regarding the meaning of Nevada’s statute on tip pooling, Nevada’s highest court ruled that an employer may impose mandatory tip pooling on employees and determine to which employees tips may be distributed. The Wynn casino’s tip pooling policy, which was reviewed by the Court and required pooled tips to be…
New York Court of Appeals Issues Starbucks Tip Ruling
By Noel P. Tripp on
Posted in New York State, Tips
In a significant victory for New York employers, the New York Court of Appeals has now held that Starbucks’ tip splitting practices did not violate New York law. In answering the certified questions in In Re Starbucks, the Court held “an employee whose personal service to patrons is a principal or regular part of…
New York High Court To Hear Oral Argument In Closely Watched Starbucks Appeal
By Noel P. Tripp on
Posted in New York State, Tips
On May 28, 2013, New York’s highest state court, the New York Court of Appeals, will hear oral argument regarding the scope and application of New York Labor Law 196-d and its tip splitting provisions to Starbucks’ tip pooling practices. The court’s analysis of these issues, which came to the court as certified questions from…