DOL Says High Court Ruling Bolsters Tip Pool Rule

Law360, New York (May 29, 2013, 5:51 PM EDT) -- The U.S. Department of Labor told an Oregon federal court on Tuesday that a recent U.S. Supreme Court ruling in favor of the Federal Communications Commission shows that the labor agency had the authority to issue a rule barring back-of-house restaurant workers from employer-mandated tip pools.

The DOL is facing a lawsuit challenging the April 2011 rule change brought by a quartet of hospitality groups, as well as a Portland, Ore.-based restaurant and one of its workers, who claim that the rule was inconsistent with Ninth’s Circuit’s 2010...
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