Articles Discussing The Minimum Wage Under The FLSA.
Executive Summary: On July 6, 2023, a federal district court upheld the U.S. Department of Labor’s (DOL’s) regulations on the type and amount of work that tipped employees may perform while being paid the reduced minimum wage under the tip credit provisions of the federal Fair Labor Standards Act (FLSA). The tip credit provisions in the FLSA permit an employer to apply a tip credit and pay a subminimum wage of $2.13 if the tips to the employee are sufficient to result in the employee earning the minimum wage of $7.25 per hour. Judge Robert Pitman in the Western District of Texas granted the defendant DOL’s motion for summary judgment in the case brought by the Restaurant Law Center and Texas Restaurant Association and denied the plaintiffs’ motion for a preliminary injunction and motion for summary judgment seeking to invalidate the regulations limiting the type and amount of work that can be performed in a tipped occupation for which the lower minimum wage is paid. See Restaurant Law Center v. United States Department of Labor, Case 1:21-cv-01106-RP (July 6, 2023).
Several state and local minimum wage rates will soon increase, beginning on July 1, 2023 (with some increases taking place during other months in the summer and fall). This article presents the state and major locality minimum wage increases for mid-2023, along with related changes in the minimum cash wage
It’s time again for our mostly rates-only update that summarizes scheduled state- and local-level wage increases throughout the summer and fall of 2023, along with some rate changes that occurred in 2023 before publication. Employers can use this information to determine the minimum amount they must pay non-exempt, tipped,
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 summarize scheduled state- and local-level wage increases that will occur on January 1, 2023 (or on New Year’s Eve
Employees of the Rivers Casino reached a preliminary $5.5 million settlement with Rush Street Gaming LLC following numerous claims of payment issues. A New York federal judge stated that the proposed settlement meets the standards of reasonableness for preliminary approval. An approved class of “non-exempt, hourly, tipped employees at
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
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
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
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.
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
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
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
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.)