Employers whose workers earn most of their compensation through tips, such as restaurant employees, know that they walk a fine line to ensure compliance with the Fair Labor Standards Act (“FLSA”) and numerous other laws.  Last month the Fifth Circuit rejected a program instituted by a restaurant operator in Texas that deducted certain fees before

Effective Jan. 1, 2014, the Internal Revenue Service (IRS) will recognize automatic gratuities, a percentage automatically added to a restaurant bill, as a service charge, rather than a tip. The IRS ruling on automatic gratuities isn’t new. This was the result of a June 2012 tax ruling that was delayed to give restaurants and related businesses more time to comply.
Continue Reading Think You Are Leaving a Tip After a Nice Meal, Think Again; You May Be Leaving Someone’s Wages – IRS Ruling On Automatic Gratuity Begins January 2014

Join Weintraub Tobin’s attorneys in connection with the California Restaurant Association and Leavitt Group in their Summer Seminar Series for Restaurants where they will examine the issues facing employers in the restaurant industry, health care reform and group captive alternatives.

Dates:

Tuesday, July 30, 2013
Claremont Resort, Berkeley, CA

Wednesday, July 31, 2013
Sutter Club,