Dedicated to promoting awareness in the trades of service
Time to Wise up
on your wage, your liability, your work
If you think education is expensive try ignorance
– Derek Bok
The 9th Circuit Court of Appeals appears to rule in favor of workers this time. Employers who do not take a tip credit may no longer be able to force waitstaff in Mandatory tip pools that include back of the house staff such as cooks or dishwashers. Waiters and Waitresses that are governed under the 9th circuit and may be affected by this ruling include the states of Arizona, Nevada, Alaska, Washington, Oregon, Nevada, Montana, Idaho, Hawaii and California.
Fair Labor Standards Act
The panel reversed the district courts’ decisions in favor
of employers, and held that Cumbie v. Woody Woo, Inc.,
596 F.3d 577 (9th Cir. 2010), did not foreclose the
Department of Labor’s ability to promulgate subsequently a
formal rule that extended the tip pooling restrictions of
Section 203(m) of the Fair Labor Standards Act of 1938
(“FLSA”); and remanded for further proceedings.
In March of 2016, the Federal Department of Labor released Fact Sheet #15A: Ownership of Tips under the Fair Labor Standards Act and stated, ” Not withstanding the Ninth Circuit’s decision, the Department will continue to be constrained by the injunctive relief entered by the district court until the Ninth Circuit issues its mandate, which formally notifies the district court of the appeal’s decision”