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Workforce

Labor group sues Olive Garden's parent in a challenge of the tip credit

The lawsuit by One Fair Wage against Darden Restaurants contends the credit is a violation of federal anti-discrimination rules.

Workforce

Department of Labor proceeds with tip-pooling expansion

Starting in May, restaurants that don't use a tip credit can include back-of-house workers in the pool.

But other industries will lose that break for employers under proposals that were put forth this week.

Their attorneys general say DOL’s proposed new guideline would be illegal and an intended solution to problems that aren’t evident.

Opening tip pools to kitchen staffers would be permitted if a tip credit isn’t taken, and the 80/20 rule would be dashed.

I should be participating in a press event that intends to tie use of the tip credit to slavery. But it wouldn't have me.

DOL's Wage and Hour Division was instructed to no longer use that standard, despite a court challenge.

The reissue of guidelines tossed in 2009 are expected to shield full-service establishments from lawsuits alleging underpayment of servers.

The decision could require restaurants to forego the tip credit for side work and untipped activities.

Little-noticed ripples on the labor front hold profound implications for foodservice employers.

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