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Articles Posted in Tip Pools

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Illegal Tip Pool Costs Restaurant to Pay Back Wages to Employees

“Restaurant industry employers must know and comply with federal requirements to claim the tip credit,” says the Department of Labor (DOL).  The DOL recently found a restaurant in violation of the federal tip pool regulations that protect tipped employees’ earnings.  In the case, the restaurant required the tipped employees to…

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Department of Labor Finds College Town Restaurants In Violation Of Overtime And Minimum Wage Laws

On March 3, 2016, the Department of Labor (DOL) issued a press release regarding its enforcement initiative in the hospitality/restaurant industry in “college towns” stating that many companies are in violation of the Fair Labor Standards Act (FLSA) wage and hour laws.  The DOL has collected almost $100,000 for workers…

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Can Restaurants Require Servers And Bartenders To Pay For Customer Walk-Outs?

The Fair Labor Standards Act (“FLSA”) permits restaurants and other employers of tipped employees to receive a “tip credit” when compensating their tipped employees. The FLSA permits the employer to pay its tipped employees $2.13 per hour plus tips as long as those tips cause the employee to make at…

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Judgments Require Restaurants To Pay Over $1 Million In Back Wages

As part of the Department of Labor’s (“DOL”) continued focus on restaurant employees, a chain of three restaurants in New York have been ordered to pay over $1,000,000 in back wages including minimum wage and overtime. The DOL’s investigators found that the restaurant employees employed as servers and kitchen staff…

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Department Of Labor Targets Illegal Pay By Restaurants

This year, the Department of Labor (“DOL”) focused on restaurants to determine whether restaurant employees were properly paid. The response was a resounding statement that the restaurant industry is vulnerable for minimum wage and overtime violations under the Fair Labor Standards Act (“FLSA”). One problem is that restaurant employees do…

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Can Restaurants Require Servers And Bartenders To Pay Credit Card Fees?

The federal tipped employee regulations allow restaurants to pay servers and bartenders $2.13 per hour plus tips as long as those tips bump up the worker to at least minimum wage per hour. A question that arises is whether restaurants are permitted to deduct anything from the bartenders or wait…

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Are You A Server, Waiter, or Bartender Required To Participate In A Tip Pool?

The area of tip pool litigation is one that has gained a lot of attention over the last few years as restaurant employees learn how they are supposed to be properly paid under the Fair Labor Standards Act (“FLSA”). First, federal regulations allow restaurants to pay their tipped employees as…

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