Tips from Seyfarth is a blog series for employers, and their in-house lawyers and HR, payroll, and compensation professionals, in the food, beverage, and hospitality sector. We curate wage and hour compliance “tips” to keep this busy industry informed.
Seyfarth Synopsis: The Connecticut General Assembly failed to pass a proposal to eliminate the tip credit for restaurant and hospitality workers before the end of the 2023 legislative session, but restaurant and hospitality employers in the Nutmeg State—and nationwide—should expect advocates to continue their efforts in years to come.
For today’s edition of Tips, we posit the following scenario. The owner of a small restaurant nestled in a bucolic New England town wakes up one morning to learn that her state legislature has just introduced a bill that (if enacted) would, overnight, more than double her labor costs for servers and bussers, likely forcing her to consider cutting those workers’ hours or eliminating some of their jobs altogether. Inconceivable, right?
Wrong. It almost happened this year in Connecticut, and similar proposals are gaining ground in other states, too.
In most states, businesses that employ workers who customarily and regularly receive tips—such as servers and bartenders in restaurants and places of lodging—may pay those workers a minimum hourly wage below the minimum wage that applies to all other workers, provided that the employee receives enough in tips to make up the difference. If, as it turns...
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