Russell Dumas Explores Proposals to Eliminate Federal Taxes on Tips with Law360

Russell Dumas, partner in the firm’s Jackson office and member of Balch’s Labor & Employment Practice, was quoted by Law360 regarding the potential impacts of proposals to eliminate federal taxes on tips for workers in certain industries.

In the article published August 16, Russell discussed how these proposals could heighten debates over what qualifies as a tip and affect efforts to remove the tipped subminimum wage.

In his interview, Russell explained that in addition to which industries these plans would apply to, there are still other unanswered questions, such as how tip-pooling situations would be handled.
"It could create a lot of confusion," Law360 quoted Russell as saying. "We would need guidance to come out on that, where there's a clear line on where you fall."

Russell also addressed concerns about the possibility of wages being misrepresented as tips, particularly for high-income earners. To prevent this, employers would need to be even more diligent in their recordkeeping and tracking of tips.

“Employers, I think, may have some additional burdens here to ensure that they are keeping up with exactly what the employees are making, what they're not making," Russell was quoted as saying. "There could be some positives to this and negatives to this for employers, but there definitely could be some growing pains at the beginning.”

Russell focuses on labor and employment and related litigation matters. Russell guides employers through the evolving legal landscape of labor and employment law by advising companies regarding compliance with state and federal law and regulations and defending employers before state and federal courts and administrative agencies. His practice focuses on advising and defending management in response to issues raised by the National Labor Relations Board and labor unions.  Russell is experienced in providing day-to-day labor and employment advice; drafting employment documents; litigating traditional employment cases including discrimination, harassment, retaliation, and hostile work environment; arbitrating labor grievances; conducting employee training; and advising or defending matters concerning Title VII, Family and Medical Leave Act, Americans with Disabilities Act, Davis-Bacon Act, National Labor Relations Act and the Fair Labor Standards Act. 

Russell has been named by The Best Lawyers in America^®, among the “Ones to Watch.” He serves as a board member for the Mississippi Defense Lawyers Association and a committee chair for the Jackson Young Lawyers.