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APPLIES TO All Employers with tipped WA employees |
EFFECTIVE March 6, 2019 |
QUESTIONS? Contact HR On-Call |
The Washington Department of Labor & Industries recently issued an administrative policy providing guidance on tips, gratuities, and service charges under the Washington Minimum Wage Act. Key portions of the policy include:
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APPLIES TO All Employers with CO, KA, NM, OK, UT, and WY Employees |
EFFECTIVE July 3, 2017 |
QUESTIONS? Contact HR On-Call |
In Marlow v. New Food Guy, the Tenth Circuit stated that employers of tipped employees may keep customer gratuities, as long as the employee is already paid the required minimum wage. An employer’s retention of tips under this circumstance does not violate the tip credit provision of the Fair Labor Standards Act (“FLSA”).
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APPLIES TO All Employers who Utilize Tip Pooling Arrangements in Alaska, Arizona, California, Hawaii, Idaho, Montana, Nevada, Oregon, and Washington |
EFFECTIVE February 23, 2016 |
QUESTIONS? Contact HR On-Call (888) 378-2456 |
Employers in service industries should take note of the recent decision in Oregon Restaurant & Lodging Assoc. v. Perez, where the Ninth Circuit Court of Appeals upheld a U.S. Department of Labor (DOL) regulation which states that employers cannot require tipped employees to share their tips with untipped employees. Prior to the decision in the Oregon Restaurant case, there was an ongoing debate among District Courts in the Ninth Circuit regarding the enforceability of the DOL regulation, causing some employers to disregard the DOL regulation entirely.