The Federal Labor Standards Act (FLSA), originally passed in 1938 and frequently updated since, defines a tipped employee as one who earns $30 a month or more in tips. For workers without state, county or city laws restricting the practice, workers under FLSA can receive a reduction in hourly pay that is covered by tips received.  Improper use of tip credit for employees is a common wage and hour dispute, and lawsuits are common when employers improperly use tip credits to reduce wages.  Here, we explore the latest rules from the Department of Labor, and common errors employers make when attempting to reduce employee owed wages with these credits.  FLSA Tip Credit  FLSA establishes the rules for how employers may use a tip credit to meet the federal minimum wage requirement. The tip credit provision allows employers of tipped employees to count part of their employees’ tips toward satisfying their minimum wage obligation. Employers can claim a credit as long as the employee’s tips make up the difference to meet the federal minimum wage of $7.25 per hour.   Under this rule, employers may pay tipped employees a base wage of $2.13 per hour and claim a tip credit of up to $5.12 per hour to cover the remainder of the minimum wage requirement. If an employee’s total earnings (tips + hourly wage) do not meet the federal minimum wage, the employer is legally obligated to compensate for the shortfall. Employees cannot earn below the minimum wage, for all time work.  […]

Schneider Wallace Cottrell Konecky LLP is pleased to announce the opening of its Washington, D.C. office.  Schneider Wallace Cottrell Konecky is a nationwide plaintiffs’ law firm founded in 1993, with offices in Northern California, Southern California, Texas, and Puerto Rico.  The firm represents both individuals and institutional clients such as health insurers and municipalities in complex civil litigation.  Schneider Wallace handles cases throughout the country, with a nationwide reach.  The firm’s Washington, D.C. office will further support our clients and cases in the nation’s capital and on the East Coast. 

ATTENTION: If you are a person with a mobility disability who uses a wheelchair, scooter, or other aid for mobility, and you use or would like to use the parks and recreation facilities operated by the City of Los Angeles, please read the following about a class action lawsuit that may affect your rights.

Schneider Wallace Cottrell Konecky LLP, a national plaintiff side law firm, is pleased to announce the February 2025 promotion of two new additional partners. Esther Lee Bylsma and J. Caleigh MacDonald join a growing partner tier at the firm.

As of January 1st 2025 twenty one states welcomed new minimum wages for (most) workers.  While the federal minimum wage remains at $7.25 per hour, most workers in the United States fall under additional minimum wages supplied by their state, county or city. 

The April 2024 federal non-compete rule from the FTC aimed to ban nearly all new non-compete agreements and invalidate most existing ones. Exceptions were limited to specific high-level employees with access to sensitive information. However, courts in Texas and Florida have since issued injunctions halting enforcement of the ban.

Despite the federal ban being on hold, a majority of the U.S. workforce is employed in states that impose varying restrictions on non-compete agreements.

Predictability pay, also known as predictive scheduling, refers to laws requiring employers to provide hourly and part-time workers with consistent, advance notice of their work schedules. When employers make last-minute changes, affected employees may be entitled to additional pay. These laws aim to promote financial stability and fairness, particularly in industries like retail and hospitality. 

As of 2025, Illinois, Hawaii, New Jersey, Massachusetts, Minnesota, and Vermont have joined other states including California and New York in requiring companies to supply information about pay and benefits in job postings. 

Recently in California wage theft and labor law news:  Another California city adds wage theft ordinance that requires developers to pay all wage theft obligations before receiving permits,  The California Department of Labor is struggling to connect with all the workers for which it has received settlements and back pay, and there is a backlog at California state agencies handling wage theft claims.

As of October 2024, the Oregon Bureau of Labor and Industries (BOLI) is implementing a policy that it can no longer investigate wage theft claims from workers earning more than $53,000 per year (approximately $25.34 per hour). This move is part of an effort to manage a backlog of claims and allocate resources to lower-income workers, who are often more vulnerable to wage theft. BOLI cited resource constraints and increasing workloads as key reasons for establishing this threshold. The agency states the reason for the change is it is struggling with underfunding and reduced staff, stating it has around 150 full time staff members.