DOL Publishes New Opinion Letters

The U.S. Department of Labor recently published three new opinion letters on the following issues:

• FLSA2021-3: Addressing whether the operations of certain entities satisfy the “establishment” requirement under Section 13(a)(3) of the FLSA, and whether an accrual method of accounting may be used to satisfy the “Receipts Test” under Section 13(a)(3)(B).
• FLSA2021-4: Addressing whether a restaurant may institute a tip pool under the FLSA that includes both servers, for whom the employer takes a tip credit, as well as hosts and hostesses, for whom a tip credit is not taken. (Nevada does not permit tip credits, but this opinion letter still provides relevant information regarding tip pools.)
• FLSA2021-5: Addressing the proper calculation of overtime pay under the FLSA when a tipped employee works as a server and bartender, and receives tips and amounts charged as automatic gratuities or service charges.

An opinion letter is an official, written opinion by the DOL on how a particular law applies in specific circumstances presented by the individual person or entity requesting the letter. It is the administrative agency’s opinion on how the law should be applied which may be given deference by the courts.

If you have questions about these opinion letters, please contact a KZA attorney.

KZA Employer Report articles are for general information only; they are not intended and should not be construed to be legal advice. Reading or replying to such articles does not establish an attorney-client relationship. In addition, because the subject matters and applicable laws discussed in Employer Report articles are often in a state of change and not always applicable to every type of business entity or organization, readers should consult with counsel before making decisions based on the same.