Restaurant Groups Appeal Order Allowing Wage Rule to Take Effect

Restaurant groups challenging a Biden administration rule requiring them to pay some tipped workers minimum wage asked the Fifth Circuit to block the rule Tuesday while their lawsuit to overturn it proceeds.

The rule, which went into effect Dec. 28, conflicts with the Fair Labor Standards Act, and violates the Administrative Procedure Act and separation of powers, the groups say.

Under the new law, when tipped employees spend at least 20% of their workweek on duties that don’t directly produce tips, they’re entitled to the full minimum wage of $7.25 per hour for that time, instead of the $2.13 an ...