Restaurant Orgs Sue To Take Down DOL's Tip-Credit Guidance

Law360 (July 6, 2018, 9:49 PM EDT) -- The Restaurant Law Center and the Texas Restaurant Association filed a lawsuit Friday against the U.S. Department of Labor in Texas federal court challenging Obama-era guidelines related to an employer's ability to reduce the minimum wage given to tipped workers.

By issuing administrative guidance over whether employers can claim a tip credit when workers do non-tipped work, the Labor Department claimed regulatory authority "well beyond" what Congress has given, the lawsuit claims.

"Through the device of an underground regulation, a provision slipped quietly into an internal agency handbook without notice to the public or an opportunity for comment, the department has...

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