DOL Defends Tip-Sharing Rules In Restaurant Groups' Suit

Law360, New York (October 22, 2012, 4:36 PM EDT) -- The U.S. Department of Labor on Friday asked an Oregon federal court to toss allegations that its recent imposition of rules barring back-of-house restaurant workers from employer-mandated tip pools violates the Administrative Procedure Act, arguing that the agency has the authority to issue such a rule.

In a motion to dismiss a suit brought by a group of restaurant associations challenging the DOL's recent rulemaking, the agency argued it acted within its authority last year in issuing a rule establishing that, under the Fair Labor Standards...
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