Monthly Archives: April 2018

The Tip Income Protection Act — Changes to Tip Pooling

The Tip Income Protection Act of 2018 (“the Act”) was signed into law on March 23, 2018 as part of the omnibus spending bill. The Act, buried in the 2,323 pages of the bill, amends the Fair Labor Standards Act (FLSA) and rolls back the Department of Labor’s 2011 regulation on tip pools. The Act allows for employees who do not customarily receive tips to participate in tip pools, where the employer does not take a tip credit. The “employees” referred to in this act also include the back of the house employees like busboys, chefs, line cooks, and janitors. …

[ CONTINUE READING ]

SCOTUS Update: DOL Rule Reversal to Impact “Narrowly Construed” FLSA Class Exemptions

In a 5-4 decision, the Supreme Court ruled on Monday that automobile service advisors are exempt from the overtime requirements of the Fair Labor Standards Act. While the decision would appear to apply only to a narrow class of employers (automobile dealers), the majority opinion rejected the principle that exemptions to the FLSA should be construed narrowly, which has the potential for much broader impact. Encino Motorcars v Navarro involved an exemption under the FLSA which provides that that statute’s overtime-pay requirement does not apply to “any salesman, partsman, or mechanic primarily engaged in selling or servicing automobiles . . …

[ CONTINUE READING ]