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Expert Analysis

In 9th Circ. Restaurateurs Must Tiptoe Around Tip Pools

Law360, New York (March 8, 2016, 10:40 AM EST) -- On Feb. 23, 2016, a divided three judge panel of the Ninth Circuit Court of Appeals validated regulations by the U.S. Department of Labor that significantly limit employers ability to maintain tip pools that extend beyond "customarily and regularly tipped" employees. The controversial 2-1 decision in Oregon Restaurant & Lodging Association v. Perez (2016 BL 50460, 9th Cir., No. 13-35765, 2/23/16) reverses two federal district court rulings that relied on the Ninth Circuit's 2010 ruling in Cumbie v. Woody Woo Inc. (596 F.3d 577)....

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