Tipping Is The New Wage-And-Hour Battlefield

By Laurent Badoux (January 3, 2019, 2:02 PM EST) -- In Alec Marsh v. J. Alexander's LLC, the U.S. Court of Appeals for the Ninth Circuit, acting en banc, issued a fundamentally important opinion of impact for employers in the Western states and beyond. Specifically, the Ninth Circuit reversed a prior ruling and adopted the U.S. Department of Labor's questionable "20 percent rule," which the Eighth Circuit had also endorsed in the 2011 decision of Fast v. Applebee's.

Giving Chevron deference to the interpretation of the DOL, the majority opinion in Marsh took the position that if a server spends 20 percent or more of his or her time engaging in...

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