The Fair Labor Standards Act (“FLSA”) permits employers to use “tip credits” to satisfy minimum wage obligations to tipped employees. Some employers use those “tip credits” to satisfy the minimum wage obligations; some do not. (And in some states, like California, they cannot do so without running afoul of state minimum wage laws.)Many hospitality employers use “tip pools” to divide customer tips among staff. Those “tip pools” normally provide for tips to be divided among “front of the house” employees who are involved in serving customers – servers, bartenders, etc. Some employers have extended the “tip pools” to include “back of the house” employees – dishwashers, cooks, etc. – particularly where they are not using a “tip credit.” In 2011, the Department of Labor (“DOL”) issued a rule prohibiting employers from including kitchen staff in “tip pools” – even where no “tip credit” was being taken. Two separate district courts held that the DOL did not have authority to issue such a rule where no “tip credit” was taken, relying on the Ninth Circuit’s ruling in Cumbie v. Woody Woo, Inc., 596 F.3d 577 (9th Cir. 2010).On February 23, 2016, in Oregon Restaurant & Lodging Assoc. v. Perez, No. 13-25765 (9th… Read full this story
- When your boss can't take your tip
- Here's where your tip money goes in Welsh restaurants
- POLITICO London Playbook, presented by BP: Good morning from Birmingham — Ham roast — Hunt stunt
Ninth Circuit Approves DOL Rule Prohibiting “Tip Pooling” For Kitchen Employees Even Where No “Tip Credit” Is Taken have 227 words, post on www.natlawreview.com at March 4, 2016. This is cached page on Law Breaking News. If you want remove this page, please contact us.