Employers and worker advocates closely followed the recent budget process and the resulting omnibus budget bill. When it was introduced and ultimately signed by the President, among the 2,232 pages were several provisions that dealt with workplace issues such as tipped-employee income and minor league baseball players.
Tip Pools
After backlash from Democrats and plaintiff lawyers, the Department of Labor walked back on regulations that would have allowed restaurant employers the ability to keep tips meant for employees. Instead, the new regulations permit restaurants to divide tip income among all staff, including back-of-house cooks. Presumably, this would allow restaurants to reduce wages for cooks and fill difference with tip income, thereby reducing wages overall. If you are a tipped employee and believe your employer kept your tips, contact our office for a free consultation.
Minor League Baseball Players
A second provision of the budget bill exempts minor league baseball players from the wage and hour laws in the Fair Labor Standards Act, thus refusing to establish a minimum wage and overtime. The rider regulations attached to the budget were a result of a lobbying effort by Major League Baseball and tracks the language of the ironically titled Save America’s Pastime Act (H.B. 5580). Baseball clubs faced recent litigation by players who claimed they worked in excess of 40 hours per week during the season and their resulting pay was less than minimum wage.