|Feb. 21, 2019 | www.fisherphillips.com|
Legal issues surrounding tip credits have been in the spotlight throughout much of 2017, from significant court decisions to announcements by the U.S. Department of Labor (USDOL). But rather than setting forth clear rules, these cases and statements have instead contributed to a sense of uncertainty among employers in the hospitality industry.
The past few years have seen a steep increase in litigation brought against hospitality businesses under Title III of the Americans with Disabilities Act (ADA). These suits often contend that certain aspects of a building, bathroom, or parking lot do not comply with the ADA’s detailed standards and regulations. With the goal of creating a physical environment that is navigable by all, Title III requires private businesses to accommodate guests with disabilities visiting their property by removing barriers to goods and services where such removal is “readily achievable” or “easily accomplishable and able to be carried out without much difficulty or expense.” This is generally determined by examining the nature and cost of barrier removal in context of the business’s financial resources.