- Biden rule involves lower minimum wage for tipped work
- AGs say rule interferes with state labor policies
- Eleven states backing challenge by restaurant groups
Nov 3 (Reuters) - A group of Republican attorneys general have told a U.S. appeals court that a Biden administration rule designed to raise pay for tipped workers infringes on states' long-held power to dictate labor policy.
The 11 state officials, led by Ohio Attorney General Dave Yost, filed a brief on Thursday urging the 5th U.S. Circuit Court of Appeals to toss out the 2021 U.S. Department of Labor rule in a challenge by the Restaurant Law Center and Texas Restaurant Association.
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The rule says workers must be paid the federal minimum wage of $7.25 an hour, and not the $2.13 minimum wage for workers who receive tips, for non-tipped tasks such as cleaning and bussing tables that take up more than 20% of their time or 30 consecutive minutes.
The AGs said in their brief that states have regulated labor standards such as minimum wages for more than a century, and the DOL rule would improperly restrict states' options for regulating tipped employment.
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The rule, for example, would preempt the decision by 14 states to adopt the federal $2.13 minimum for tipped workers, they said.
"The existing state laws reflect each state's judgment about what best suits their citizens' unique mix of political and economic concerns," the states said in the brief.
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