Biden Tip Rule Again Survives Challenge From Restaurant Groups

July 6, 2023, 9:15 PM UTC

A Department of Labor rule requiring restaurants to pay some tipped workers the full $7.25 minimum wage during their downtime has for the second time survived two restaurant groups’ legal challenge, a win for the Biden administration.

The Restaurant Law Center and Texas Restaurant Association Thursday failed to convince Judge Robert Pitman of the US District Court for the Western District of Texas that the rule, which has been in place since December 2021, was out of line with the Fair Labor Standards Act and thus arbitrary and capricious.

Pitman’s second denial of the groups’ bid to block the rule ...

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