Tip the Scales in Your Favor by Providing Tipped Employees with Adequate Written Notice
Complying with the Fair Labor Standards Act and the Department of Labor's regulations for tipped employees continues to make challenges for those in the hospitality industry. While recent attention has been paid to proper tip pooling practices (employers requiring certain tipped employees to give a portion of their tips, which are then split amongst a group of employees), equal attention must be given to the FLSA's mandatory notice provision to tipped employees.
A continuing trend in wage and hour lawsuits comes from the employer's failure to give the tipped employee the required notice. When this type of failure occurs, the employer may be liable for back pay, liquidated damages, and the employee's attorneys' fees and costs.