Despite a number of pending lawsuits challenging the Biden Administration’s authority to impose the minimum wage increase for federal contractors, the new
Articles Discussing The Minimum Wage Under The FLSA.
What’s next? The Potential Impact of the Fifth Circuit’s Mayfield Decision on the 2024 DOL Minimum Salary Rule
Tenth Circuit Upholds Court’s Refusal to Enjoin Federal Contractor Minimum Wage Hike
President Joe Biden likely has authority under the Procurement Act to raise the minimum wage for employees of federal contractors to $15 per hour, the U.S. Court of Appeals for the Tenth Circuit ruled. Bradford v. U.S. Dep’t of Labor, No. 22-1023 (Apr. 30, 2024).
Sixth Circuit Rejects Two Methods for Computing Workers’ Vehicle Expenses for Minimum Wage Purposes
The U.S. Court of Appeals for the Sixth Circuit vacated two district court decisions involving how pizza delivery drivers should be reimbursed for vehicle-related expenses under the Fair Labor Standards Act (FLSA). Parker v. Battle Creek Pizza, Inc., No. 22-2119 (Mar. 12, 2024); Bradford v. Team Pizza, Inc., No. 22-3561 (Mar. 12, 2024). The Sixth Circuit panel remanded both cases.
2024 State and Major Locality Minimum Wage Updates
Almost half of the states, and several major localities, will increase their minimum wage rates in 2024, with a majority of the changes effective on January 1, 2024. The table below lists state and certain major locality minimum wage increases for 2024—and future years, if available—along with the related changes
Texas Federal Court Bars Enforcement of $15 Minimum Wage for Federal Contractors Against Three States
President Joe Biden exceeded his authority under the Procurement Act when he issued an executive order (EO 14026) raising the minimum wage rate for employees of federal contractors to $15 per hour, a federal court in Texas ruled in a suit brought by the states of Louisiana, Mississippi, and Texas. Texas, et al. v. Biden, et al., No. 6:22-cv-00004 (S.D. Tex. Sept. 26, 2023).
Dear Littler: How Do Restaurants Without Table Service Handle Tips?
Dear Littler,
Texas Federal Court Stiffs Restaurant Industry on Efforts to Strike Down Department of Labor Regulation on Tip Credit Work
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).
Midyear 2023 State and Major Locality Minimum Wage Increases
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
As Temperatures Rise, So Do Minimum Wage, Tipped, and Exempt Employee Pay Rates Across the United States
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,
After the Ball Drops, Wages Rise: Minimum Wage, Tipped and Exempt Employee Pay Increases on January 1, 2023
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
U.S. Minimum Wage, Tipped, and Exempt Employee Pay Increases Will Heat Up This Summer (And Possibly Other Seasons)
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
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.