Tips for Tip-Related Lawsuits: Adjusting to Legal Changes for Customer-Compensated Workers

More than five decades ago, Congress extended federal hourly wage laws to hotels and restaurants, including specific provisions "to permit the continuance of existing practices with respect to tips."

However, recent court decisions and administrative regulations are putting long-accepted practices under review, as tip-related litigation for hospitality employers has seen a dramatic increase during the past two years. Hospitality employers must exercise caution as confusion persists over the use of the tip credit.

Holland & Knight Attorneys Michael Starr, Nate Adams and Loren Forrest will identify the current issues and challenges concerning tipped employees, provide practical suggestions for reducing the risk of legal liability and discuss how to effectively manage litigation if a tip-related lawsuit is filed.

This program is designed for lawyers and human resources professionals in the restaurant and hotel industries.

The webinar will answer the following questions:

• What employees are eligible for a tip credit against the minimum wage? How is that affected by assigning tasks that are not directly "tip generating"?
• How must employers manage a tip-pooling arrangement? Who can be included and who cannot? What consequences follow from a mandatory tip pool that is not properly constituted?
• What notice and other requirements must be followed for valid implementation of tip credits or mandatory tip pools?
• What factors affect whether a tip-based lawsuit can proceed as a class action? How effective are arbitration agreements in avoiding class-based litigation?