Dive Brief:

• Four business associations — the National Retail Federation, National Federation of Independent Business, American Hotel and Lodging Association and the American Gaming Association — filed an amicus brief May 16 supporting a judicial challenge of the U.S. Department of Labor’s tip regulations. The lawsuit, filed by the National Restaurant Association’s Restaurant Law Center and the Texas Restaurant Association, centers on a provision commonly referred to as the 80/20 rule.
• In the brief, the associations said complying with the 80/20 rule would create “insurmountable burdens” due to a lack of compliance clarity. They also argued that tipped employees typically outearn minimum wage, obviating the need for the rule; that the rule would require “employee-monitoring systems that would come at enormous costs to employers and employees;” and that the characterization of “tip-producing” and “directly supporting” work is confusing and in conflict with “the realities of the service environment,” among other problems.
• “The organizations filing this amicus brief are united in the position that the Final Rule does not provide their members with critical clarity on how compliance could be achieved, if at all,” the organizations and their attorneys said in a statement provided to HR Dive. “The regulatory requirements in the Final Rule are ill-suited to the realities of the industries DOL seeks to regulate and the compliance challenges and significant costs the rule imposes...

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