Eleventh Circuit: “Necessary” Means “Used” – Not “Necessary” – When Determining “Handling Clause” Coverage Under FLSA

Prendergast, Mike - 300dpi
Mike Prendergast

In Asalde v. First Class Parking Sys., LLC, No. 16-16814, ___ F.3d ___, 2018 U.S. App. LEXIS 17935 (11th Cir. June 29, 2018), a collective action for unpaid minimum wage and overtime, the United States Court of Appeals for the Eleventh Circuit found, in a split decision, that foreign-made uniforms worn by parking lot valets create a genuine issue of fact concerning an employer’s “enterprise” coverage under the Fair Labor Standards Act’s “handling clause.”  Continue reading

Eleventh Circuit Allows Employer to Share Employee’s Tips as Long as It Pays Employee Minimum Wage

Federal regulations currently treat tips as the employee’s property, regardless of whether the employer pays that employee the minimum wage or whether it uses a tip credit to satisfy the minimum wage requirement. Recently, the federal Department of Labor (DOL) proposed a rule that, if passed this year, would allow employers to require the sharing of tips with employees who do not customarily receive direct tips (such as restaurant cooks, dish washers, and similar workers), so long as the employer pays employees the full federal minimum wage of $7.25 per hour. Employers who use the tip credit option to satisfy the minimum wage obligation would not be allowed to require tip sharing with workers who do not customarily receive tips.

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