ARTICLE
6 September 2024

Expert Insights—Tips From Seyfarth: In A Major Win For Restaurants, Fifth Circuit Vacates DOL's 80/20 Rule

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Seyfarth Shaw LLP

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With more than 900 lawyers across 18 offices, Seyfarth Shaw LLP provides advisory, litigation, and transactional legal services to clients worldwide. Our high-caliber legal representation and advanced delivery capabilities allow us to take on our clients’ unique challenges and opportunities-no matter the scale or complexity. Whether navigating complex litigation, negotiating transformational deals, or advising on cross-border projects, our attorneys achieve exceptional legal outcomes. Our drive for excellence leads us to seek out better ways to work with our clients and each other. We have been first-to-market on many legal service delivery innovations-and we continue to break new ground with our clients every day. This long history of excellence and innovation has created a culture with a sense of purpose and belonging for all. In turn, our culture drives our commitment to the growth of our clients, the diversity of our people, and the resilience of our workforce.
Seyfarth's Ariel Cudkowicz and Michael Steinberg co-authored an article, "EXPERT INSIGHTS—TIPS FROM SEYFARTH: IN A MAJOR WIN FOR RESTAURANTS, FIFTH CIRCUIT VACATES DOL'S 80/20 RULE,"...
United States Employment and HR

Seyfarth's Ariel Cudkowicz and Michael Steinberg co-authored an article, "EXPERT INSIGHTS—TIPS FROM SEYFARTH: IN A MAJOR WIN FOR RESTAURANTS, FIFTH CIRCUIT VACATES DOL'S 80/20 RULE," inThomson Reuters' Westlaw Todayon September 3. The Seyfarth attorneys discussed the impact of the Fifth Circuit striking down the Department of Labor's December 2021 regulation codifying the DOL's longstanding "80/20 rule" regarding gratuities.

"The Fifth Circuit's decision roundly rejects the 80/20 rule's focus on whether employees' discrete work activities are tip-producing or not, and instead concludes that the plain meaning of the statute is clear: an employer may claim the tip credit for any employee who, when engaged in her job—whatever duties the job entails—customarily and regularly receives more than $30 per month in tips."

The full article is available here.

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