Authored by Alex Passantino
All around the country, tipping practices have been coming under scrutiny. Restaurants increasingly have abandoned their use of tip credit — and tipping — partially due to a belief that a higher wage not tied to the fluctuations of tipping is better for morale and operations, and partially due to the complexities of dealing with wage
Continue Reading Ninth Circuit “Tips” Away from Prior Decision, Finds Pooling Rules Applicable
Authored by Alex Passantino
‘Twas the week before Christmas, 2-0-1-5
When the poetry elves on the blog came alive.
Crafting their rhymes with a purpose so clear:
Presenting the wage-hour gems of the year.
In January, for new regs in this year our breath bated.
Then for six painful months, we speculated and waited.
And just as
Continue Reading I’m Dreaming of a White Collar: 2015 Year in Review
Co-authored by Gerald L. Maatman, Jr. and Jennifer A. Riley
Restaurant servers are some of the few employees to whom employers can pay less than the minimum wage. This is because they receive tips from customers that, so long as those tips are large enough, often push an employee’s income well above minimum wage. The FLSA thus allows an employer
Continue Reading Court Batters “Dual Jobs” Claim And Finds That Servers’ Duties Do Not Require Minimum Wage
Co-authored by John W. Egan and Nadia S. Bandukda
As we previously reported, the Second Circuit has been considering the validity of Starbucks’ tipping practices in light of the opinion from the New York Court of Appeals clarifying the prohibition in the New York Labor Law against participation in tip-pooling arrangements by employers and their “agents.”
With its certified
Continue Reading Update on the Battle “Grande”: Second Circuit Upholds Starbucks’ Tip Policy
Co-authored by John W. Egan and Robert Whitman
Retail and hospitality employers should perk up at the recent decision (here) by the New York Court of Appeals to affirm Starbucks’ tip pooling policy. On June 26, the Court resolved questions certified by the Second Circuit (as we previously reported here) regarding the New York Labor Law’s prohibition against
Authored by Alex Passantino
As we reported previously, a federal judge in Oregon recently ruled that the U.S. Department of Labor’s 2011 tip-pooling regulations were invalid. Earlier this week, the court entered a final judgment, striking down and setting aside those portions of the DOL regulations that state that “tips are the property of the employee when his/her
Authored by Steve Shardonofsky
A federal judge in Oregon recently gave the Secretary of Labor a very important tip: Just because the FLSA appears to be silent on a particular issue does not give the U.S. Department of Labor authority to fill the gap with regulations. In a June 7, 2013 opinion [here], a district court ruled that
Co-authored by John W. Egan and Robert Whitman
We reported [here] in November on the Second Circuit’s referral of two important Labor Law questions to the New York Court of Appeals in a challenge to Starbucks’ tip-pooling policy. Briefing is now complete and oral argument is scheduled for next week.
The consolidated appeal, in Barenboim v. Starbucks and
Co-authored by Arthur J. Rooney and Jeremy W. Stewart
When should a tipped employee no longer be treated as a tipped employee? Plaintiffs’ lawyers argue that restaurants cannot utilize the tip credit, or pay tipped employees a sub-minimum wage, if tipped employees perform any “non-tipped” duties, such as washing dishes or taking out the trash. Earlier this week, a District
Co-authored by John W. Egan and Robert Whitman
Tip pools and tip sharing are hot topics in New York for employers in the food service and hospitality industries. The Second Circuit recently certified to the New York Court of Appeals two questions seeking to clarify the New York Labor Law’s prohibition against participation by an employer’s “agents” in tip
Continue Reading Battle “Grande” over Starbucks’ Tip Pools Heading to the New York Court of Appeals