Federal Appeals Court Invalidates the U.S. Department of Labor’s 2021 Tip Credit Rule

On August 23, 2024, in the case of Restaurant Law Center, et. al. v. U.S. Department of Labor, et. al., the U.S. Court of Appeals for the Fifth Circuit invalidated the U.S. Department of Labor’s (DOL) 2021 Tip Credit Rule (”Rule”) that required employers to pay tipped workers the general minimum wage rate for their time spent performing work that is not part of a tipped occupation, including downtime.