Santiago J. Padilla, P.A.

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Located in the Miami metropolitan area, the Law Offices of Santiago J. Padilla, P.A., offers comprehensive services for business clients with a variety of needs.

Wages and Hours Archives

A Mandatory Gratuity or Service Charge is Not a Tip and Need Not be Shared with Employees

As many people know, under the Fair Labor Standards Act, persons who work for tips are called tipped employees and the employer may pay such employees less than the required minimum wage. For a the employer, this is called the "tip credit."  This applies to most restaurant employees, such as waiters, bussers, etc. However, the law also states that such employees must be able to keep all of the tips received and the employer cannot keep any portion of those tips.

Proposed Rule May Allow Millions to Qualify for Overtime Compensation

Last week, the U.S. Department of Labor ("DOL") issued a Notice of Proposed Rulemaking that would allow millions of additional workers to receive overtime compensation. In particular, under the current law, administrative employees that earn at least $455 per week are not entitled to overtime compensation. Section 12(a)(1) of the Fair Labor Standards Act of 1938 provides an exemption from both minimum wage and overtime pay for such employees.