Restaurant Groups Sue DOL Over Tip Credit Rule Change

Law360, New York (June 16, 2011, 8:20 PM EDT) -- A trio of restaurant and small business trade groups sued the U.S. Department of Labor on Thursday for not giving their members an opportunity to comment on a new rule that changes how employers notify employees about tip credits.

Under the Fair Labor Standards Act, employers are allowed to apply a portion of gratuity that employees receive to offset their minimum wage obligations, but are subject to a number of conditions, including informing employees about the tip credit. The minimum required cash wage for a tipped...
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