The U.S. Court of Appeals for the Fifth Circuit has revived a legal challenge to regulations issued by the Biden Administration’s Department of Labor (DOL) in 2021 related to tips and the use of the tip credit under federal wage and hour law. In overturning a federal trial court decision in Restaurant Law Center v. U.S. Department of Labor that denied a motion for a preliminary injunction sought by an affiliate of the National Restaurant Association, the appeals court instructed the trial court to do a better job of analyzing whether an injunction was appropriate. Although the Fifth Circuit’s ruling raises the possibility that the revised tip regulations ultimately might be found unenforceable, the revised regulations remain in full effect for now.
Members of the Center for Workplace Compliance (CWC) can read more here.