Restaurant Groups Sue DOL Over Change To Tip Pool Rule

Law360, New York (July 13, 2012, 5:40 PM EDT) -- Four restaurant trade groups sued the U.S. Department of Labor on Thursday, claiming the agency’s rule barring kitchen workers from restaurant tip pools conflicted with a Ninth Circuit ruling that upheld the practice.

In a complaint filed in Oregon federal court, the National Restaurant Association and Alaska, Oregon and Washington industry groups claim the rule was inconsistent with Ninth’s Circuit’s 2010 decision in Cumbie v. Woody Woo Inc.

The appeals court found that the Fair Labor Standards Act allowed restaurants to engage in tip pools in which employers collected tips left by customers and distributed them between servers and nontipped employees,...

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