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Legal Update Header On June 21, 2021, the U.S. Department of Labor (DOL) announced a proposed rule to clarify when employers can claim a tip credit to compensate their tipped employees.

The proposed rule is scheduled for publication in the federal register on June 23, 2021. Employers will have 60 days from the date of publication to submit their comments about the proposed rule to the DOL.

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Legal Update Header On Dec. 30, 2020, the U.S. Department of Labor (DOL) published a final rule to amend employee tip regulations under the Fair Labor Standards Act (FLSA).

On Apr. 29, 2021, the DOL published another final rule delaying the effective date of three provisions of the 2020 employee tip rule (the Rule) to Dec. 31, 2021.

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Legal Update Header On Dec. 22, 2020, the U.S. Department of Labor (DOL) published a final rule to amend employee tip regulations under the Fair Labor Standards Act (FLSA).

The final rule was scheduled to take effect on March 1, 2021; however, on Feb. 26, 2021, the DOL delayed the rule’s effective date to April 30, 2021.

Portions Approved to Take Effect

After reviewing the rule for consistency with law and policy, the DOL announced that it will allow provisions that increase worker protections and earnings to take effect in April, including provisions that:

Legal Update Header An employee working a “one week on, one week off” schedule who takes 12 workweeks of federal Family and Medical Leave Act (FMLA) leave may be required to return to work 12 weeks later, a federal appeals court has held.

In Scalia v. State of Alaska, the 9th Circuit Court of Appeals found that an employer may count both “on” and “off” weeks against the FMLA leave entitlement of an employee on a rotating schedule. Ninth Circuit decisions apply in Alaska, Arizona, California, Hawaii, Idaho, Montana, Nevada, Oregon, Washington, Guam and the Northern Mariana Islands. The opinion was issued Jan. 15, 2021.