Credit: wavebreak3/Adobe Stock Fifth Circuit Vacates Labor Department Final Rule on Tip Credit
The Fifth Circuit reversed a district court order allowing enforcement of an hourly wage rule regulating when employers can take the tip credit when paying services workers at the federal minimum $2.13 per hour.
August 26, 2024 at 03:14 PM
5 minute read
What You Need to Know
- The Fifth Circuit did away with a Labor Department final rule on calculating non-tip-related work in the service industry.
- A rule erased the employer tip credit if over 20% of work or over 30 continuous minutes of a task is not tip-performing.
- The Fifth Circuit suggested the Labor Department focus on defining what is a "tipped occupation."
A federal appeals court axed a final rule of the U.S. Department of Labor intended to prevent employers from exploiting workers who rely on earnings from tips.
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