In August 2024, we reported on the highly anticipated opinion in Restaurant Law Center v. U.S. Department of Labor, 115 F.4th 396 (5th Cir. 2024), in which the Fifth Circuit vacated the 2021 Dual Jobs Final Rule as arbitrary, capricious, and contrary to the text of the Fair Labor Standards Act (FLSA). In light of that decision, the U.S. Department of Labor (DOL) recently published a new Final Rule eliminating the 2021 Dual Jobs Final Rule—commonly referred to as the “80/20/30” rule—from the Code of Federal Regulations (CFR). This is a technical amendment that reinstates the DOL’s original dual jobs regulation and restores the CFR to its pre-2021 language based on the 1967 dual jobs regulation.Continue Reading DOL Returns to Prior Dual Jobs Regulation for Tipped Employees
DOL Reaffirms That Managers And Supervisors May Not Participate In Tip Pools
By James P. Looby on
Posted in DOL, Employment
On December 18, 2024, the DOL issued opinion letter FLSA2024-02, reaffirming its position that managers and supervisors are prohibited from participating in tip pools under any circumstances.
Tip pooling is a common practice in the hospitality industry where employees contribute any tips received into a pool at the end of a shift and…
The DOL Issues Its Final Independent Contractor Rule
By Ellen M. Hemminger & Peter Walrod on
On January 9, 2024, the Department of Labor (DOL) announced a final rule creating the test for independent contractor status under the Fair Labor Standards Act. The final rule marks the rescission of the Trump administration’s more employer-friendly rule and revives the likeness of prior tests that are more likely to classify workers as employees…