Texas restaurateur Robert Mayfield is suing the U.S. Department of Labor (DOL) to halt a rule that restricts his ability to offer his managers compensation packages that he believes are appropriate.
The legal complaint (pdf) in the case, Mayfield v. U.S. Department of Labor, court file 1:22-cv-00792, was filed in U.S. District Court for the Western District of Texas on Aug. 9. Labor Secretary Martin Walsh is also named as a defendant.
Mayfield, a resident of Austin, is the sole shareholder and owner of R.U.M. Enterprises Inc. He took over the family business in 1979 and has been working for it for 43 years. The company operates 13 Dairy Queen franchises and a Wally’s Burger Express.
Mayfield already pays well above the minimum wage, beginning at $15 per hour to bring in top talent. When they take on management roles, employees receive a guaranteed salary, as well as bonuses based on company profits.
But his managers would earn larger bonuses if a DOL regulation gave employers greater flexibility in determining compensation rates, according to the Pacific Legal Foundation (PLF), a national nonprofit public interest law firm that’s representing Mayfield.
The federal Fair Labor Standards Act specifically exempts “bona fide executive, administrative, or professional (EAP) employees” from its default hourly pay rules, but the department issued a regulation contradicting the law’s exemption for employees performing executive, administrative, or professional duties unless they...
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