November 2024


 

News

Fair Labor Standards Act Allows Tip Sharing between Tipped and Non-Tipped Employees

A recent amendment to the Fair Labor Standards Act prohibits employers from keeping employees’ tips, including allowing managers or supervisors to keep any portion of these tips. The amendment also allows for tipped workers (e.g., waiters) to share tips with non-tipped workers (e.g., cooks) as long as the employer does not take a “tip credit.”

Supreme Court Exempts Auto Service Advisors from Overtime

The United States Supreme Court, in Encino Motorcars, LLC v. Navarro, has held that “service advisors” are exempt from overtime under the Fair Labor Standards Act’s “automobile dealer” exemption applicable to salesmen, partsmen, and mechanics.

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