Brigitte Duffy Published in the Fair Labor Standards Act (FLSA) Legal Insider
"Taking Advantage of the Tip Credit and the 'Inside Sales' Exemption Requires Care"

Brigitte Duffy's article, "Taking Advantage of the Tip Credit and the 'Inside Sales' Exemption Requires Care," appears in the March 2009 issue of the Fair Labor Standards Act (FLSA) Legal Insider. Brett Bartlett contributed to Brigitte's article. In her article, Brigitte discusses how over the last few years, there has been a surge in lawsuits relating to the pooling, sharing and distribution of tips. According to the attorney, in this economy, "any employer that takes a tip credit must fully understand how the credit works. Strict compliance with the applicable FLSA provisions not only shields employers from liability but also allows employers to lower payroll costs by taking advantage of available federal tip credit, or where service charges are paid, 'inside sales' overtime exemption." Brigitte continues by explaining how the tip credit works and the intricacies of the law. She concludes, "Employees, and more importantly, the attorneys who represent them are becoming well-educated about the mistakes employers make in taking the tip credit." Businesses with tipped employees are well advised by Brigitte to review their practices and ensure they are compliant with the law.