Marsh v. J. Alexander’s LLC

The en banc court reversed the district courts' dismissals of actions concerning tip credits toward servers' and bartenders' wages under the Fair Labor Standards Act (FLSA). Plaintiffs alleged that their employers abused the tip credit provision by paying them a reduced tip credit wage and treating them as tipped employees when they were engaged in either (1) non-tipped tasks unrelated to serving and bartending; or (2) non-incidental tasks related to serving or bartending.The court held that the Department of Labor foreclosed an employer's ability to engage in this practice by promulgating a dual jobs regulation, 29 C.F.R. 531.56(e), and subsequently interpreting that regulation in its 1988 Field Operations Handbook (the Guidance). The en banc court held that the regulation was entitled to Chevron deference; and the agency's interpretation in the Guidance was entitled to Auer deference because the regulation was ambiguous and the Guidance's interpretation was both reasonable and consistent with the regulation. The en banc court reversed and remanded, holding that plaintiffs have stated a claim under the FLSA for minimum wage violations. View "Marsh v. J. Alexander's LLC" on Justia Law