Restaurant Law Center and Texas Restaurant Association again seek to block limits on use of tip credit for sidework
The Restaurant Law Center — an affiliate of the National Restaurant Association — and the Texas Restaurant Association on Friday filed a lawsuit challenging the U.S. Department of Labor’s upcoming limits on using the tip credit for side work.
Scheduled to go into effect Dec. 28, the amended regulations announced by the labor department in October attempt to limit when employers can use the sub-minimum wage, or tip credit, to the hours when workers are performing tip-producing tasks or tasks that directly support tip-producing work, like setting tables, making coffee or rolling silverware. Employers will only be able to use the tip credit if the worker spends less than 20% of hours worked during a workweek or less than 30 minutes continuously on tip-supporting work.
Related: Proposed elimination of the 80/20 tip credit rule is likely illegal, attorneys general say
In the lawsuit filed in U.S. District Court for the Western District of Texas in Austin, the Restaurant Law Center and Texas Restaurant
Association argue that the labor department has overstepped its authority and is “attempting to re-write the statute via regulation.”
Emily Williams Knight, the Texas Restaurant Association’s president and CEO, said in a statement, “Tasks such as getting the restaurant ready for customers, restocking items during meal service, cleaning, and closing down the...
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