United States: Employment Litigation/ Tribunals

On April 22, 2026, the United States Department of Labor (“DOL”) announced its new proposed rule aimed at clarifying when multiple employers share joint liability for violations of federal wage and hour laws. The proposed rule is entitled “Joint Employer Status Under the Fair Labor Standards Act, Family and Medical Leave Act, and Migrant and Seasonal Agricultural Worker Protection Act.”

The Sixth Circuit issued two significant decisions in the long-running labor dispute between Rieth-Riley Construction and Local 324, affirming NLRB findings that the employer violated the NLRA through unilateral wage changes, unlawful lockouts, and refusal to bargain.

A Texas federal court's $21 million judgment against Perry's Restaurants demonstrates the severe financial consequences of improper tip pool arrangements under the Fair Labor Standards Act. The case reveals how including non-tipped employees in mandatory tip pools can strip employers of the tip credit, trigger double damages, and expose individual owners to personal liability. What specific compliance failures led to this massive judgment, and what steps must employers take to protect themselves from simila