Restaurants Win Fifth Circuit Appeal in Bid to Block Tip Rule

Two restaurant industry groups have successfully revived their effort to block a Biden administration rule requiring restaurants to pay some tipped workers the full $7.25 minimum wage during their downtime.

The opinion, issued Friday by the US Court of Appeals for the Fifth Circuit, found that the US District Court for the Western District of Texas “abused its discretion in finding no evidence of irreparable harm” when it considered the groups’ request for a preliminary injunction last year.

“Curiously, the district court did not acknowledge the Department’s concession that some businesses will incur ongoing costs to ensure they can ...