Posted On: July 22, 2009

Tip Pooling under the FLSA

Next time you go to an Atlanta sushi or other nice restaurant, notice the side conversations among the staff. Much of the time, it concentrates on tips, taxes, and other paperwork that most restaurant workers know little or nothing about.

If you work for tips, one of the more disliked conventions in the hospitality business is the practice of tip pooling, where the wait staff makes the tips and then is mandated to share them with the host staff, bus staff, etc. This is different from the wait staff voluntarily giving a percentage of tips to their co-workers, and has tax and other implications. This practice has its own set of rules for both employers and employees, and is easily abused by employers looking to save a few bucks here and there.

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Posted On: July 15, 2009

Compensation for Online Training

Many companies in the Atlanta area now require that their employees take online training classes, or classes at outside facilities. Should the time spent taking this training be compensated? The FLSA covers this issue in general, and a recent DOL opinion letter shines an interesting light on some facts that may come up while employees are taking classes on their computers.

Generally, the FLSA says about online training that it is not compensable if the following four criteria are met:

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Posted On: July 8, 2009

Belo Plan Contracts

One of the requirements in the FLSA to prove that an employee is under salary and not an hourly employee for the purposes of paying overtime is the concept of a “constant weekly wage,” where the employee gets a set salary for set hours worked per week. Any variance on that theme can result in the employee collecting overtime.

But there are some jobs that just don’t fit that description. There is an exception to that “constant wage” rule, but it is very narrow and very specific and needs to be in writing. It is called a “Belo Plan,” named after the Supreme Court case that allowed the exception, (Walling v. A.H. Belo Co., 316 U.S. 624 (1942)), and provides for a constant wage, even though overtime is actually worked.

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