Attorneys working on wage and hour cases involving employer mandated tip pooling are being pulled in different directions in regards to wage and tip rules established by the Fair Labor and Standards Act (FLSA) and recent rulings. In 2011, civil attorneys noted a new law by the U.S. Department of Labor (DOL) Wage and Hour Division. Lawyers know the new law, which spelled out appropriate tip pooling and service charge practices, has cost employers lots of money. More than $22.5 million was collected by the Wage and Hour Division for back pay due to FLSA violations by restaurants and hospitality businesses. Since the June 2013 Oregon Restaurant and Lodging v Hilda L. Solis case, the interpretation of the FLSA has changed and encouraged lawyers to legally challenge the DOL's regulations.
California employers should have a civil attorney review their tip pooling, tip credit, and service charge practices to protect themselves from a costly lawsuit. The DOL is continuing an aggressive campaign to enforce the FLSA in the hospitality and restaurant industries. If you are in the hospitality industry or a restaurant owner, it is now more important than ever to have your employment policies and procedures reviewed by an attorney in California.
Given the recent rulings and legal challenges made by lawyers, restaurateurs should not try to interpret the legalese on their own without the expertise of an attorney. A civil attorney who knows the rulings and laws can assess how they apply to your individual circumstances and business model, including any unique characteristics of your employees. An attorney can examine all your service employees, including waiters, waitresses, kitchen workers, cooks, dishwashers, hosts, and busboys, and how they work together, what their hourly rates are, tips and service charges and how the FLSA and other California and federal laws factor in.
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