Service charge

11th Cir. Salt Bae Decision Provides Service Fee Plan

By Ted Boehm and Courtney Leyes (May 19, 2022, 3:55 p.m. EDT) — Using tip credit under the federal Fair Labor Standards Act has never been riskier for employers in the hospitality industry. the hotel industry.

Under this statutory pay system, an employer can pay certain types of employees an hourly rate below the federal minimum wage and then take credit for tips received by the employee to make up the difference between the two rates.

But while this system looks simple in the abstract, it comes with strings attached.

Many commentators have astutely addressed various efforts to undermine or eliminate tip credit, so we won’t add to that discussion here. Instead,…

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