
To avoid landing in court, hotels must stay on top of the latest rules and regulations. In January, the Internal Revenue Service (IRS) issued new guidelines for tips and service charges. In addition to the IRS' new rules, the Fair Labor Standards Act (FLSA), which issues standards for the basic minimum wage and overtime pay, has a separate set of guidelines for service workers, which if not followed, makes the hotel industry vulnerable for lawsuits. Since each state has its own laws regarding service charges and tipping, hotel operators must ensure that they are compliant with their state regulations to avoid legal issues. READ MORE