Tip Pooling and Other Wage and Hour Issues in the Hospitality Industry: New FLSA Amendments

Description

Buried in the recently passed budget reconciliation bill, Congress addressed an FLSA dispute regarding tip pooling arrangements. Hospitality industry employees (hotels, restaurants, caterers, nightlife, etc.) with tipped staff must be aware of the changes, reevaluate their tip pooling procedures, and ensure their overtime pay and worker classifications are compliant, among others.

In addition to these changes, there remain potential areas of wage and hour liability exposure for hospitality industry employers, including overtime pay and employee classification. Employment counsel advising hospitality industry employers must understand the current enforcement and litigation environment and recommend productive labor and employment policies and practices to minimize the risk of noncompliance. Counsel must also prepare to defend their hospitality industry clients in DOL audits and employee suits.

Significant changes in the salary basis for exempt employees will likely have a significant effect on many restaurant manager positions— particularly those in the fast food and fast casual segments.

Listen as our authoritative panel discusses current developments impacting hospitality industry employers. The panel will outline the new FLSA amendments affecting tip pooling rules, strategic policies and practices to minimize liability exposure, and best practices to defend against DOL audits and employee claims.