Restaurant Groups’ Tip Rule Challenge to Return to Fifth Circuit

Two restaurant industry groups again are appealing a federal district court dismissal of their challenge to a US Labor Department rule limiting when employers can use the tip credit.

The Restaurant Law Center and the Texas Restaurant Association on Thursday appealed a ruling denying their request to block the Biden administration rule, which requires companies to pay some tipped workers the full minimum wage during their downtime.

The rule at issue, which went into effect in December 2021, requires employers to pay the full hourly minimum wage to tipped workers who earn the lower tip-credit wage if they perform ...