Plaintiff Jacob Davis brought a putative class action against International Coffee and Tea, LLC (the company that operates Coffee Bean and Tea Leaf) alleging that the company’s tip pooling policy violated California’s Labor Code section 351. The trial court sustained Coffee Bean’s demurrer to plaintiff’s second amended complaint without leave to amend. Plaintiff appealed the
As I wrote about recently, on March 23, 2018, the Consolidated Appropriations Act, 2018 signed by President Trump changed federal law on the issue of tip pools and allows employers to share tips with back of the house employees. In connection with the new law, the Department of Labor issued a memorandum this week
In a huge development in the last couple of weeks, a change in federal law now permits California employers to include back of the house employees in tip pools. This week’s post is an update and a general discussion about issues facing restaurants, hotels, and other industries where tipping and gratuities are left for