USDOL has finally clarified the so-called “20% Rule” limiting the use of the FLSA tip credit even with respect to individuals qualifying as “tipped employees”.
The USDOL recently announced that it will continue its Payroll Audit Independent Determination (PAID) program, and wasted no time beginning its efforts to further educate employers and attorneys about the benefits of the program.
Tip credit controversies are alive and well as employers seek clarity on the USDOL's so-called 20% Rule regarding "tipped employees" engaging in activities that do not, or at least not directly, produce tips.
USDOL's Payroll Audit Independent Determination (PAID) pilot program is meant to provide employers with the framework to proactively resolve potential FLSA claims. Nonetheless, on the whole, it seems that the benefits and risks are not particularly distinguishable from an investigation.
Whether the FLSA effectively prohibits an employer from imposing certain costs (such as for purchasing a uniform) on an employee depends on a variety of factors, including whether it is cost-prohibitive in the particular circumstances.
A recent court decision reaffirms that properly-handled recoupments of minimum-wage supplements advanced against future commission earnings are lawful under the FLSA.
Employers should be careful when considering whether and how to use compensation-based measures as substitutes for more-direct means of managing employee conduct.
Legislation has been introduced that would ultimately more-than-double the FLSA's minimum wage from today's $7.25 an hour to $15 an hour.
Employers should review our summary chart to be sure that they are aware of applicable state minimum-wage increases for 2017.
Be sure you are aware of all applicable state and local minimum-wage increases for 2016.