Service Charges/Gratuities

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

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

NY CofA.bmpCo-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

Oregon.jpgAuthored 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

NYCAppCt.jpgCo-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

N.D. Ind. Seal.jpgCo-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. 


Second Circuit Seal.jpgCo-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