RECENT LEGAL DEVELOPMENTS
KITCHEN STAFF TIP POOLS: YOU CAN, YOU CAN, AND NOW YOU CAN’T!
On February 23, 2016, the United States Court of Appeals for the Ninth Circuit endorsed a rule promulgated by the United States Department of Labor (DOL), which prohibits tip pool policies that allow kitchen staff and dishwashers to participate in tips. (Oregon Restaurant and Lodging Association v. Dept. of Labor, No. 13-35765 and Cesarz v. Wynn Las Vegas, No. 14-15243).
Given this opinion, under Federal Labor Standards Act (FLSA), employers are prohibited from having a tip pool that allows the participation of employees who do NOT “customarily and regularly receive tips.” This overturns two previous cases endorsing tip policies that share tips with kitchen staff. Employers in California, Alaska, Minnesota, Montana, Nevada, Oregon and Washington are advised to review and revise any tip policy which allows kitchen staff to participate in tip pools. In this Legal Brief, Matthew Marca explains how the law flip-flopped. read more…
SEC ACTION FURTHER UNDERMINES USE OF CONFIDENTIALITY AND NON-DISPARAGEMENT AGREEMENTS
A recent settlement announced by the Securities and Exchange Commission sounds a clear warning to employers against the use of overly restrictive confidentiality provisions that tend to discourage reporting of federal securities law violations. The SEC enforcement actions necessitates that employers carefully review confidentiality and non-disparagement clauses. In this Legal Brief, Bill Gutierrez discusses the implications to employers. read more…
COMMISSIONED EMPLOYEES MIGHT BE ENTITLED TO OVERTIME AND OTHER PENALTIES
A recent decision by the California Supreme Court in Peabody v. Time Warner Cable drastically changes pay issues with respect to commissioned employees, especially if you delay payment of commissions earned earlier in the month or quarter. The case changes both how you pay commissions and when and if you have to pay your commissioned employees overtime. In this blog post, Matthew Marca helps clarify what the ruling means to employers. read more…