THE SUPREME COURT RULES THAT AUTOMOBILE SERVICE ADVISORS ARE FLSA EXEMPT.

04/10/2018Bibeau Anne G.

The Supreme Court ruled on April 2, 2018, that automobile service advisors are exempt under the Fair Labor Standards Act (“FLSA”) and therefore not entitled to overtime pay. The Court’s opinion, in Encino Motorcars, LLC v. Navarro, ends a long-running controversy over the extent of the FLSA’s overtime exemption (29 U.S.C. § 213(b)(10)(A)) for “any… Read more »

RESTAURANT AND HOTEL INDUSTRY ALERT: SIGNIFICANT CHANGES FOR TIP POOLING ARRANGEMENTS

04/09/2018Bibeau Anne G.

Buried in the recently passed budget reconciliation bill, Congress addressed a Fair Labor Standards Act (“FLSA”) dispute regarding tip pooling arrangements. Restaurant and hotel owners with tipped staff need to be aware of these changes and to reevaluate their tip-pooling arrangements accordingly. The FLSA permits employers to require employees who are customarily and regularly tipped… Read more »