Executive Summary: On Tuesday, December 22, 2020, the U.S. Department of Labor (DOL) announced its final rule regarding expansion of tip pool sharing and limitations on the 80/20 rule. This long-awaited final rule codifies three main points: employers are (1) permitted to include “back-of-the-house” employees who usually do not receive tips (such as cooks and dishwashers) as part of a tip pool, (2) prohibited from allowing management from keeping employees’ tips or participating in tip-pooling arrangements, and (3) permitted to take a tip credit regardless of the amount of non-tip generating work (such as cleaning tables or rolling silverware) a tipped employee performs as long as it is performed contemporaneously with his/her tipped duties, or within a reasonable time immediately before or after performing tipped duties.
Archives for 2020
UPDATE: President Trump Signs Stimulus Bill into Law – FFCRA Mandatory Leave Provisions End December 31, 2020 But Tax Credits Continue
UPDATE: President Trump signed this bill into law without changes on December 27, 2020.
Consolidated Appropriations Act, 2021: PPP and Tax Provisions
The Consolidated Appropriations Act, 2021 (Act) generally provides the annual funding for the federal government and contains several important rules giving further COVID-19 relief. These include, among other things, revisions to the Paycheck Protection Program (PPP), expansion of the employee retention tax credit, and changes to other employer-related tax provisions.
Consolidated Appropriations Act, 2021: Employer-Sponsored Retirement Plans
The Consolidated Appropriations Act, 2021 generally provides the annual funding for the federal government and also contains several important rules giving further COVID-19 relief. The comprehensive relief package funds certain hard-hit industries, expands eligibility for the Paycheck Protection Program (PPP), and extends and expands the Employee Retention Tax Credit.
The
FTC Settles Claims Financial Institution Failed to Oversee Its Vendor’s Data Security Practices
Assessing the privacy and cybersecurity practices of third-party service providers is critical not only for employee personal information, but also for confidential and personal information pertaining to an organization’s business and its clients, customers, patients, students, etc. The Federal Trade Commission (FTC) announced a settlement on December 15 with a
Congress Includes COVID-19 Economic Relief Provisions for Employers and Individuals in Federal Government Funding Bill
On December 21, 2020, Congress passed a massive bill (H.R. 133) that would fund the federal government for the remainder of fiscal year (FY) 2021 while also providing $900 billion in COVID-19 economic relief for employers and individuals. President Trump signed the bill into law on December 27, 2020. Coming
Drug Testing Legislation in 2020: A Look Back
We would all be excused for wanting 2020 to disappear in a fog of medical marijuana. In case you missed it, here’s a recap of a very busy year for Ogletree Deakins Drug Testing Practice Group.
Consolidated Appropriations Act Requirements to Increase Health Plan Transparency
The Consolidated Appropriations Act (CAA), 2021, which was signed into law December 27, 2020, includes provisions designed to increase transparency in employee health benefit plans in four key areas.
IoT Devices to See New Security Guidelines in 2021
Setting up that new IoT device you received for Christmas? Maybe you’ve been derelict in feeding the dog and found a smart dog feeder under the tree, one that will alert you that Luna has been fed or that you have to refill the feeder. Smart gizmos are not just
Court Order Enjoins Enforcement of Executive Order Limiting Diversity Training
A federal district court has entered a nationwide preliminary injunction stopping the administration from enforcing Executive Order (EO) 13950 – Combating Race and Sex Stereotyping. Santa Cruz Lesbian and Gay Cmty. Ctr., et al. v. Trump, No. 5:20-cv-07741-BLF (N.D. Cal. Dec. 23, 2020).
Colorado Confirms COVID-19 Triggers Public Health Emergency Leave Under the Healthy Families and Workplaces Act
Earlier this year, Colorado enacted a complex paid sick leave law, the Healthy Families and Workplaces Act (HFWA), which requires Colorado employers to provide three distinct types of paid sick leave:
DOL Issues Final Rule on Handling Tips and Eliminating the 80/20 Rule
On December 22, 2020, the U.S. Department of Labor (DOL) issued a final rule solidifying tip credit issues under the Fair Labor Standards Act (FLSA). The rule becomes effective 60 days after its publication in the Federal Register.1
Personal Data from Thousands of Pension Plan Accounts Breached…Third-Party Service Provider Blamed
One of the last things pension plan participants would want to learn as they get ready to celebrate the Christmas holiday is that personal data from their pension accounts may have been compromised. This is the case, unfortunately, for approximately 30,000 Now:Pensions customers whose names, postal and email addresses, birth
Court Order Stops Enforcement of President Trump’s Executive Order on Combatting Race and Sex Stereotyping
Since it was issued in September 2020, Executive Order 13950 – Combatting Race and Sex Stereotyping has been a source of controversy and criticism. Speculation as to the fate of the Executive Order in the future Biden/Harris administration has accelerated in recent weeks with talks of rescission and legal challenges.
District of Columbia Imposes Significant Restrictions on the Hospitality Industry
The District of Columbia Council has passed several pieces of legislation that impose significant obligations on D.C. employers, particularly those in the hospitality industry. Below are summaries of recent laws passed in the District and key obligations of each.
Amendments to the Tipped Wage Workers Fairness Amendment Act