Employco Blog

Tipped employees are common in restaurants, hotels, salons, and other service industries. The Fair Labor Standards Act (FLSA) imposes specific wage and hour rules that apply only to tipped workers. These rules include specific requirements for calculating minimum wage and overtime pay for tipped employees, restricting which workers may share in tip pools and addressing mandatory service charges.

On Sept. 7, 2026, the U.S. Department of Labor (DOL) issued Opinion Letter FLSA2026-11 addressing whether required travel to and from an employer’s designated break area affects whether an unpaid meal period qualifies as a bona fide meal break under the FLSA.

Background – The FLSA does not require employers to provide meal periods. However, if an employer chooses to provide meal breaks, the employer must comply with the FLSA’s meal period requirements. In general, bona fide meal periods are not compensable if they are 30 minutes or longer and the employee is completely relieved from duty and not interrupted by work, even for a short time. For example, if an office employee remains at their desk while eating lunch and regularly answers the telephone or responds to customers, they should be paid for this time because the employee has not been completely relieved from duty. Mandatory travel time to reach a break area does not automatically convert the entire period into paid time. However, if the meal periods are of sufficient duration and are significantly reduced by travel time, frequent or lengthy interruptions, or restrictions, then the meal period or portions of it may be compensable.

Paid time off (PTO) is a valuable benefit that supports employee well-being, work-life balance, and overall productivity. However, many employees find themselves running low—or completely out—of PTO by the fall season, leaving little flexibility for year-end holidays, sick days, or other unexpected events. This pattern can lead to stress, burnout, and decreased productivity, especially during the final quarter of the calendar year when workloads often increase.

Question: If I have a new hire who works from home in another state, can she email me a copy of her driver’s license for me to use when completing the employer section of the Form I-9?

October is the season for ghosts, and some of the scariest ones are showing up in the hiring process. Hiring has always involved uncertainty, but employers and job seekers are facing a growing trust issue involving “ghost” jobs and “ghost” candidates. A “ghost job” is a position that is posted online even though the company isn’t actually ready—or doesn’t intend—to hire someone for the role. There can be legitimate reasons a job stays posted, such as a change in budget or a decision to consider an internal candidate. But employers should still make an effort to keep job postings current. Job seekers are already becoming more skeptical about whether online job openings are legitimate, and that can hurt an employer’s reputation and make good candidates less likely to apply. One recent survey found that nearly one-quarter of employers had encountered at least one fake or fraudulent applicant in the previous year.

California Paid Family Leave Grant Program Extended Again – The California paid family leave (PFL) grant program for small businesses has been extended again. The program was established by the California Employment Training Panel and the California Labor and Workforce Development Agency to offset costs of the PFL program for employers. The program will run through May 31, 2028, or until funds run out.

Commercial healthcare costs are projected to rise by the highest level in 17 years. For employers, this will mean higher premiums, rising deductibles, and growing pressure on benefit budgets. Several factors are contributing to these ongoing pressures, including:

• Provider Costs Are Increasing – Healthcare providers continue to face major financial pressure of their own, particularly related to workforce costs. According to the American Hospital Association, labor accounts for approximately 60% of hospital expenses. Persistent staffing shortages, competition for healthcare workers and wage growth have increased the cost of delivering care across the country. When providers negotiate higher reimbursement rates to offset those expenses, those costs ultimately flow through the healthcare system and contribute to higher premiums. Provider consolidation adds another layer of pressure. As hospitals and health systems combine, they often gain greater negotiating leverage with insurers. In many markets, this can lead to higher reimbursement rates, increasing costs for health plans and employers alike.

Learning and development (L&D) programs can help employers attract and retain talent, improve performance, and strengthen workplace culture. They can also prepare employees for new responsibilities as business needs and technology evolve.

However, meaningful employee development does not require large L&D-specific teams or an extensive budget. By using existing knowledge, accessible technology, and focused learning formats, employers can create cost-effective programs that produce tangible results.