Tag Archives: tip credit

DOL Reverses Course on “80/20” Limitations for Tipped Employees

DOL
On November 8, 2018, the Department of Labor (DOL) issued 4 new opinion letters providing both employers and employees further insight into the agency’s views regarding compliance with federal labor laws.  While the letters touch on a variety of issues, perhaps the most notable change involves the DOL’s about-face regarding the amount of “non-tipped” work … Continue reading this entry

Restaurant Employers Take Note—the Fifth Circuit Offers Instruction on Proper Deductions from Credit Card Tips

The Fifth Circuit recently decided how much a restaurant employer could deduct from an employee’s tips received by credit card to offset the costs associated with collecting and distributing the tips. In Steele v. Leasing Enterprises, Limited, the Fifth Circuit concluded the employer can only deduct the direct costs associated with paying out the tips. … Continue reading this entry