DOL Publishes Final Amendments to Regulations Interpreting FLSA and the Portal-to-Portal Act

Posted on April 8, 2011 by Wage and Hour Practice Group

By Kimberly Yates

On April 5, 2011, the Wage and Hour Division of the U.S. Department of Labor published its final amendments to regulations interpreting the Fair Labor Standards Act of 1938 (FLSA) and the Portal-to-Portal Act of 1947.

The new regulations provide specific guidance pertaining to ownership of employee tips, a description of permissible tip pooling arrangements, and clarification of the required notice to a tipped employee concerning an employer’s intent to utilize the FLSA’s tip credit. The DOL explains the amendments were driven by a need to revise regulations that are out of date as a result of “subsequent legislation.” The final amendments to the regulations, which differ in some significant respects from those the DOL originally proposed in 2008, will be effective May 5, 2011.  Continue reading this entry at Littler's Wage & Hour Counsel. 

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Bill Would Establish Base Minimum Wage for Tipped Employees

Posted on May 28, 2009 by Jay Sumner

Last week Rep. Donna Edwards (D-Md) introduced legislation that would amend the Fair Labor Standards Act (FLSA) to establish a base minimum wage for tipped employees. The Working for Adequate Gains for Employment in Services Act or “WAGES Act” (H.R. 2570) – which has 20 co-sponsors – would take effect 90 days after the bill’s enactment, mandating that tipped employees be paid at least $3.75 per hour. This amount would increase to $5.00 per hour beginning July 1, 2011. The following year, this base amount would increase to 70 percent of the minimum wage as established under section 6(a)(1) of the FLSA, or $5.50 per hour, whichever amount is greater.

If enacted, this bill would have significant impact on the service industry. Under the terms of this legislation, the Secretary of Labor would be required to publish any increase in the base amount for tipped employees at least 10 days in advance of any change.

The WAGES Act has been referred to the House Committee on Education and Labor.

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