by Stephen D. Hans | Oct 11, 2018 | Employment Defense Attorney, Restaurant Industry, Tipped Wage Policy
Why Did the RLC Sue the DOL over Tipped Wages? On July 6, the Restaurant Law Center (RLC) sued the Department of Labor (DOL) over an enforcement policy that demanded tipped workers must receive full minimum wage under certain circumstances for non-tipped work. Workers spending 20 percent or more of their weekly hours doing tasks that were not tipped work had to receive full minimum wage for those hours. The RLC is the litigation department of the National Restaurant Association. It presented its case before a federal court in Texas, requesting that the court invalidate the policy. It claimed that under the Administrative Procedure Act, the policy was arbitrary and capricious. Tipped Wage Policy Details Tipped employees, such as bartenders and servers receive a minimum base of at least $2.13 per hour as long as their hourly pay plus tips is more than the full minimum wage of $7.25 per hour. If the employee’s tips plus $2.13 base do not total $7.25 per hour, the employer must make up the difference. Examples of side tasks that are not tipped functions include filling salt and pepper shakers, rolling silverware in napkins, stocking liquor, washing glasses and so on. Allegations Brought by the RLC According to a BNA article, the RLC alleges that the Obama Administration slipped a policy into the internal agency handbook without public notice or opportunity for dispute. Doing so was in violation of the Administrative Procedure Act (APA). The lawsuit requests the Court to set aside the provision and enjoin enforcement of the APA. The RLC argues that the policy is contrary to the Fair Labor Standards...
