Tip Credit 80/20 Rule After Recent Nationwide Invalidation: Employer Impact, State Law Interaction, Policy Challenges
A live 90-minute CLE video webinar with interactive Q&A
This CLE webinar will examine the recent Fifth Circuit decision in Restaurant Law Center v. U.S. Dept. of Labor (2024) that vacated the DOL's 2021 FLSA tip credit "80/20" rule on a nationwide basis and address the impact this will have on employers. The panel will discuss best practices for helping employers develop FLSA compliant policies to mitigate the risk of federal enforcement action and address interaction with possibly conflicting state laws.
Outline
- Introduction: FLSA tip credit overview
- History of the "80/20" tip credit rule
- DOL fluctuating guidance
- Legal challenges
- Restaurant Law Center v. U.S. Dept. of Labor (5th Cir. 2024)
- Vacating "80/20" tip credit rule
- Interaction with state laws
- Impact on employers
- Wage calculation
- Policy creation
- Best practices for compliance
Benefits
The panel will review these and other important considerations:
- For what reasons did the Fifth Circuit vacate the DOL's 2021 "80/20" tip credit rule?
- How may this impact employer wage and hour policy development, and what are best practices for helping clients develop FLSA compliant policies?
- What state law considerations should counsel and their clients take into account when developing wage and hour policies?
- How may the Fifth Circuit's decision impact other circuit court decisions, and what could be the resulting effect on employers?
Faculty
Y. Jed Charner
Attorney
Jackson Lewis
Mr. Charner represents employers in employment litigation and workplace law matters, including preventive advice and... | Read More
Mr. Charner represents employers in employment litigation and workplace law matters, including preventive advice and counseling. His practice is largely focused on defending complex wage and hour class and collective actions and single plaintiff cases in state and federal courts. He has substantial experience representing a wide variety of clients and industries in complex wage and hour matters, including companies in the healthcare, construction, hospitality, insurance, manufacturing, retail, and education industries, among others. Mr. Charner is also experienced at advising clients on various other employment matters, including terminations and discipline, performance improvement plans, disability and religious accommodations, FMLA and leave issues, OSHA compliance, and workplace investigations.
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Joy C. Einstein
Shareholder
Shulman Rogers
Ms. Einstein counsels employers concerning employee misconduct, workplace harassment, compensation and leave issues,... | Read More
Ms. Einstein counsels employers concerning employee misconduct, workplace harassment, compensation and leave issues, and represents employers in litigation involving discrimination, sexual harassment, wage and hour claims, non-competition and non-solicitation covenants, and breach of contract. She also reviews and drafts employee handbooks. When litigation is unavoidable, Ms. Einstein vigorously represents clients before federal and state courts, and before administrative agencies including the EEOC and state and municipal human rights commissions. She also represents employers in labor union matters, including collective bargaining negotiations, unfair labor practice charges, and union representation proceedings before the National Labor Relations Board. Ms. Einstein regularly partners with the Restaurant Association of Metropolitan Washington to provide educational programs on employment law concerns unique to the hospitality industry to its members. Past topics include the 80/20 Rule, navigating the post-COVID hospitality landscape and wage modeling following the tip credit ban.
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Victoria L. Vish
Attorney
Ogletree Deakins
Ms. Vish is a litigator and advisor who helps companies reduce risks and resolve employment challenges. She... | Read More
Ms. Vish is a litigator and advisor who helps companies reduce risks and resolve employment challenges. She litigates all aspects of employment cases in federal and state courts, arbitration tribunals, and administrative agencies, including the EEOC, and DOL, on behalf of employers. She also regularly handles EEOC investigations and defends any ensuing litigation. Ms. Vish has experience litigating wage and hour claims, disability, age, and Title VII discrimination and retaliation claims, as well as breach of contract claims. She also advises clients before litigation occurs, providing counsel and advice regarding employee separations, accommodation of disabilities, various wage and hour issues, including tip credits and tip pooling, and the preparation and implementation of employment policies, among other issues.
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