Restaurants’ Challenge to Tip Wage Limits Returns to 5th Circuit

Restaurant groups will get a second chance to present to a federal appeals court their case against a US Labor Department rule limiting when employers can use the tip-credit, or pay tipped-employees less than minimum wage.

Fifth Circuit Judges Jennifer Walker Elrod and James E. Graves Jr., joined by Louisiana federal court Judge Barry W. Ashe, will hear arguments April 29 from the Restaurant Law Center and the Texas Restaurant Association over why the rule change in effect in December 2021 should be tossed out.

The restaurant groups sued over the rule in 2021, warning that businesses face ...