Tip Credit Toolkit

    • Do you have tipped employees?
    • Do they begin working before they serve customers or finish work after closing?
    • Do you have a tip pool or tip sharing arrangement in your workplace?

If your answer to any of these questions was “yes,” the Fisher Phillips Tip Credit Toolkit is your ticket to compliance with the federal Fair Labor Standards Act (“FLSA”).

Compliance with the FLSA “tip credit” rules has never been more onerous for employers of tipped employees. The US Department of Labor’s latest version of the “80/20 Rule” is a job duties and time tracking nightmare for employers. This rule would present difficulties for employers in a calm workplace, but compliance is even more difficult in a bustling and fast-paced environment common in the hospitality industry. DOL investigators are increasingly focusing on the hospitality industry through investigations which often result in assessed back wages, liquidated damages and civil money penalties. And even more worrisome for employers is the threat of class or collective action private lawsuits by current or former employees alleging violations of the FLSA tip credit requirements.

To minimize these risks, we have created the Tip Credit Toolkit. This toolkit will provide you with the documents aimed at helping you ensure (and demonstrate) compliance with the FLSA. The toolkit is suitable for any employer of tipped employees, regardless of workforce size.

The Toolkit is right for you if you have tipped employees in any state where the FLSA controls the rules and requirements for paying tipped employees, and includes the following offerings:

  • An FLSA Tip Credit Notice
  • A “Side Work” Policy Acknowledgment
  • Tip Pooling Policies (one for a service charge workplace) (one for tipped employees)
  • A Training Presentation for managers on the 80/20 Rule
  • A one-hour legal consultation (which can be split up and include email, phone or in-person sessions) with a Fisher Phillips attorney

For more information on Fisher Phillips’ Tip Credit Toolkit, contact any of the attorneys listed on this page or email TipCreditToolkit@fisherphillips.com.