5th Circuit Vacates DOL’s Tip Credit Rule, Finds It ‘Contrary’ To FLSA’s Text

(August 26, 2024, 10:19 AM EDT) -- NEW ORLEANS — A Fifth Circuit U.S. Court of Appeals panel on Aug. 23 reversed a trial court’s summary judgment order for the U.S. Department of Labor (DOL) in a case challenging the agency’s final rule restricting when employers may claim a “tip credit” for “tipped employees,” vacated the final rule and rendered summary judgment for the two associations challenging the rule, opining that the rule was “arbitrary and capricious” and “contrary” to the clear text of the Fair Labor Standards Act (FLSA)....