Eight States, D.C. Sue DOL to Block Tip-Credit Wage Rule

A Department of Labor rule that reverses the Fair Labor Standards Act’s “dual jobs” regulation and allows employers to pay tip-credited wages for any amount of nontipped work drew a Tuesday lawsuit by Pennsylvania Attorney General Josh Shapiro (D), along with attorneys general from seven other states and Washington, D.C.

If enacted, the rule will force tipped employees to “work more for less pay,” and substantially reduce their overall wages, further “exacerbating the impact the COVID-19 pandemic,” the complaint alleges. It will also harm the states’ interests in their workers, economies, and sovereignty.

The DOL rule unlawfully discards the longstanding ...