Minimum wage laws can affect businesses of all sizes, whether operating nationwide, in multiple jurisdictions, or only in one state, county, or city. To help manage this challenge, below we provide, essentially, a rates-only update that summarizes scheduled state- and local-level wage increases throughout the summer and fall of
Articles Discussing The Minimum Wage Under The FLSA.
Fifth Circuit Ruling a Stark Reminder of Employer Obligations When Taking FLSA Tip Credit, Imposing Uniform Fees
Generally, the Fair Labor Standards Act (FLSA) requires employers to pay at least minimum wage (currently $7.25) for all non-overtime hours in a workweek. However, subject to any contradictory state laws, an employer may pay a “tipped employee” – one who customarily and regularly receives at least $30 per month
Salt Bae’s Sprinkle of First Impression: Eleventh Circuit Holds Mandatory Service Charges Are Not “Tips” and May Be Used to Satisfy FLSA Wage Requirements
On March 18, 2022, the U.S. Court of Appeals for the Eleventh Circuit1 upheld a district court’s decision2 that an 18% service fee charged at the upscale Miami steakhouse of celebrity chef Nusret Gökçe was not a “tip” and was properly used by the restaurant to satisfy its minimum wage obligations
Restaurant’s Mandatory Service Charge Was Not a Tip and May Satisfy FLSA Wage Requirements, Eleventh Circuit Holds
A Miami restaurant’s mandatory 18% service charge did not constitute a “tip” under the Fair Labor Standards Act (FLSA) and therefore was properly applied toward satisfying the FLSA’s employee wage requirements, the U.S. Court of Appeals for the Eleventh Circuit recently held, affirming summary judgment in favor of the employer.
Decreasing Prospects for Increasing the Federal Minimum Wage to $15
The centerpiece of the Biden administration’s labor and jobs agenda is an increase in the federal hourly minimum wage to $15 an hour. Last year President Biden, via executive power, instituted a $15 minimum wage for federal contractors, but it has proven a harder lift on Capitol Hill to
Lawsuits Filed Challenging the DOL Dual Jobs Final Rule, $15 Federal Contractor Minimum Wage
Several recent lawsuits have been filed in federal court, one challenging the Dual Jobs Final Rule published by the Department of Labor (DOL) that became effective in late December 2021, and two others filed this week by several state attorneys general challenging President Biden’s Executive Order requiring most federal contractors
Minimum Wage Increases in 2022: A Chart of Upcoming Changes and Interactive Map
In 2022, while the federal minimum wage will remain at $7.25 per hour for non-tipped employees and $2.13 per hour for tipped employees, several states’ minimum wage rates will increase. The chart below lists the state (and certain major locality) minimum wage rate increases for 2022—and future years if available—along
Restaurant Industry Alert: DOL Publishes Final Rule for Tipped Employees
On October 29, 2021, the U.S. Department of Labor (DOL) published its Final Rule related to tipped employees. It is effective December 28, 2021. DOL had issued a Notice of Proposed Rulemaking (NPRM) on June 21, 2021, proposing limits on the tip credit employers can take during workweeks when tipped employees perform work that directly supports tipped work but does not itself produce tips. (See our prior Alert discussing the NPRM.)
DOL Publishes Final Rule Implementing President Biden’s $15 Federal Contractor Minimum Wage Executive Order 14026
The Department of Labor (DOL) has published its Final Rule implementing President Biden’s April 27, 2021, Executive Order 14026 raising the minimum wage from $10.95 an hour to $15 an hour (with increases to be published annually).
Federal Contractor $15 Minimum Wage Rule Finalized; Takes Effect January 30, 2022
The DOL today published the Final Rule implementing the $15 per hour minimum wage for federal contractor workers who work on or in connection with covered contracts, which President Biden authorized by in Executive Order 14026. Building on former President Obama’s Executive Order 13658, President Biden in April 2021 issued
Ring in the New Year with Minimum Wage, Tipped and Exempt Employee Pay Increases
Minimum wage laws can affect businesses of all sizes, whether operating nationwide, in multiple jurisdictions, or only in one state, county, or city. To help manage this challenge, below we provide a rates-only update that details scheduled state- and local-level wage increases that will occur on January 1, 2022
DOL Formally Reinstates ‘20%’ Rule, Adds ‘30-Minute’ Rule Setting Limits on Tip Credit Use
On October 28, 2021, the U.S. Department of Labor (DOL) issued a Final Rule establishing limits on the amount of time tipped employees can spend performing work that is not “tip-producing work” and still be paid at the reduced cash wage applicable to tipped employees under the Fair Labor Standards Act (FLSA).
DOL Publishes Final Rule to Resurrect 80/20 Rule for Tipped Employees
On October 28, 2021, the U.S. Department of Labor (DOL) announced publication of a final “dual jobs” rule, which reverses course from a December 2020 final rule and resurrects the so-called “80/20 Rule” that governs how tipped employees must be paid under the Fair Labor Standards Act (FLSA).
Restaurant Industry Alert: DOL Issues Final Rule Modifying Tip Sharing
On September 23, 2021, the U.S. Department of Labor (DOL) issued its latest rule related to tip pooling. The rule modifies and clarifies aspects of a rule previously issued by the Trump administration. Several portions of the Trump administration’s final rule went into effect April 30, 2021.
Labor Department Issues Tip Regulations Final Rule on Tip Sharing, Civil Monetary Penalties
The U.S. Department of Labor (DOL) has issued a Final Rule under the Fair Labor Standards Act (FLSA), addressing the conditions under which managers or supervisors may receive or share tips, including whether managers and supervisors who receive tips directly from customers may share those tips with others.
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