Legal Update: 5th Circuit Strikes Down DOL’s Tip Credit Final Rule

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On Aug. 23, 2024, in Restaurant Law Center v. U.S. Department of Labor, the U.S.Court of Appeals for the 5th Circuit vacated the U.S. Department of Labor’s(DOL) 2021 final rule that updated tip credit regulations under the Fair Labor Standards Act (FLSA). This rule is known as the 80/20/30 rule.

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