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Total Articles: 4

Employers Escape Private Claims under the Tennessee Tip Statute

Executive Summary: In Hardy v. Tournament Players Club Southwind, the Tennessee Supreme Court held that an employee cannot pursue a private right of action under the Tennessee Tip Statute, T.C.A. § 50-2-107. This statute sets forth an employer’s duty to pay service charges, tips, and gratuities to its tipped employees. This decision overrules the Tennessee Court of Appeal’s ruling in Owens v. University Club, which held that an employee may pursue a civil action against an employer under the statute.

Restaurant Industry Update: Tennessee Court of Appeal Permits Lawsuit under State Tip Law to Proceed

Executive Summary: The Tennessee Court of Appeal has held that a bartender can proceed with her lawsuit under §107 of the Tennessee Wage Regulation Act (TWRA), claiming her employer failed to pay her and other similarly situated employees tips and that it distributed tips among tipped and non-tipped employees in violation of the law. See Hardy v. Tournament Players Club (July 2, 2015). In reaching this decision, the court held that the General Assembly's 2013 amendments to §50-2-101 of the TWRA, providing that the Department of Labor and Workforce Development will enforce that section and eliminating the reference to civil litigation, did not deprive individuals of the right to bring a lawsuit under §50-2-107 (addressing payment of tips).

Tennessee Employers Beware—Make Sure You Are Paying Your Employees On Time

Tennessee requires employers to comply with several requirements when it comes to paying employees their wages. Most of these requirements are set out in the Tennessee wage payment statute. Employers are required to maintain regular paydays and notify employees of when these paydays are with written notices posted in at least two locations in the workplace.

New Opinion May Affect Worker's Final Check (pdf).

Holds decision to payout vacation is governed by company policy.