DOL Tips Rule Likely Illegal, Democratic State Lawyers Say (1)

A coalition of Democratic state attorneys general is laying the groundwork for a potential lawsuit to try to halt a new Labor Department tip credit regulation.

The top elected attorneys from 18 states plus Washington, D.C., in a recent letter to Labor Secretary Eugene Scalia slammed a proposal to rescind a prior tips rule. They said the proposed changes to minimum wages for tipped employees would hurt restaurant workers’ incomes and likely violates federal law governing regulations.

The attorneys general submitted their letter the day before the public comment period closes on the rule, which the department proposed in ...