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The National Restaurant Association's Restaurant Law Center and the Texas Restaurant Association have <a href="https://restaurantlawcenter.org/wp-content/uploads/2021/12/RLC-File-Stamped-Complaint-No-Exhibits-12-3-21.pdf?utm_source=1851franchise.com&utm_medium=article&utm_campaign=restaurant-operators-rally-against-biden-administrations-tip-credit-policy-2717433" target="_blank" rel="nofollow">filed a lawsuit</a> against the Department of Labor over its <a href="https://www.federalregister.gov/documents/2021/10/29/2021-23446/tip-regulations-under-the-fair-labor-standards-act-flsa-partial-withdrawal?utm_source=1851franchise.com&utm_medium=article&utm_campaign=restaurant-operators-rally-against-biden-administrations-tip-credit-policy-2717433" target="_blank" rel="nofollow">revisions</a> to the Fair Labor Standards Act tip regulations, which are set to take effect Dec. 28.Those revisions include the DOL's resurrected 80/20 rule, which is designed to provide increased tipping benefits for workers in "dual job" situations, where tipped employees perform both work that produces tips as well as work that directly supports their tip-producing work. The rule aims to redefine what work is considered to be in support of an employee's tipped occupation, stating that it must be performed for more than 20% of the employee's hours worked during the workweek or a continuous period of time exceeding 30 minutes.The plaintiffs of the recent lawsuit claim that the new regulation acts in conflict with the Fair Labor Standards Act and will "severely impact small and local restaurant owners' ability to operate their businesses." The Biden administration has been instituting several new rules that are meant to create additional earning opportunities for tipped employees, but this lawsuit claims that those opportunities come at a cost for operators struggling with <a href="https://1851franchise.com/labor-crisis-persists-as-restaurants-remain-750000-workers-short-of-pre-covid-levels-2717398#featured">labor shortages</a> and <a href="https://1851franchise.com/supply-chain-crisis-should-franchise-brands-turn-to-hoarding-2717359#featured">supply chain crises</a>.On the other hand, the potential impact on wages through an 80/20 revision could provide a much-needed boost to employee retention in the restaurant industry. The <a href="https://www.bls.gov/news.release/empsit.nr0.htm?utm_source=1851franchise.com&utm_medium=article&utm_campaign=restaurant-operators-rally-against-biden-administrations-tip-credit-policy-2717433" target="_blank" rel="nofollow">Bureau of Labor Statistics November</a> job report found that the restaurant industry is down more than 750,000 jobs since the onset of the COVID-19 pandemic and, according to a <a href="https://onefairwage.site/wp-content/uploads/2021/05/OFW_WageShortage_F.pdf?utm_source=1851franchise.com&utm_medium=article&utm_campaign=restaurant-operators-rally-against-biden-administrations-tip-credit-policy-2717433" target="_blank" rel="nofollow">One Fair Wage report</a>, nearly 80% of restaurant workers say they want to leave their jobs because of low wages and tips.Related articles:&nbsp;<ul><li><a href="https://1851franchise.com/new-omicron-variant-may-cause-inflation-troubles-to-extend-into-2022-2717376#featured">New Omicron Variant May Cause Inflation Troubles To Extend Into 2022</a></li><li><a href="https://1851franchise.com/labor-crisis-persists-as-restaurants-remain-750000-workers-short-of-pre-covid-levels-2717398#featured">Labor Crisis Persists as Restaurants Remain 750,000 Workers Short of Pre-COVID Levels</a></li><li><a href="https://1851franchise.com/supply-chain-crisis-should-franchise-brands-turn-to-hoarding-2717359#featured">Supply Chain Crisis: Should Franchise Brands Turn to Hoarding?</a></li></ul>

Restaurant Operators Rally Against Biden Administration's Tip Credit Policy

1851 Franchise

The DOL's newly reinstated policy, named the 80/20 rule, is meant to provide greater tipping benefits to employees, but operators are expressing their concern.

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Children's Lighthouse

Children’s Lighthouse Ramps Up Growth in First Half of 2025 With Strategic Expansions, Franchise Signings, and New Headquarters

childrens-lighthouse-ramps-up-growth-in-first-half-of-2025-with-strategic-expansions-franchise-signings-and-new-headquarters

Right at Home

Right at Home® Named a 2025 Top Franchise Brand for Multi-Unit Owners by Entrepreneur Magazine

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Dog Training Elite

Dog Training Elite -Tips-to-Ease-Dog Anxiety-for-4th of July- July-2025

Dog Training Elite Shares Tips To Ease Dog Anxiety for 4th of July

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Melting Pot

Photo of interior of Melting Pot restaurant

Lexington Herald Leader: This Restaurant Chain Eyes a Return to Lexington After 10 Years

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Keke's Breakfast Cafe

Keke's Breakfast Cafe - John and Kimberly Ehrhard - 1851 Franchise

Empowering Leadership, One Pancake at a Time: How John and Kimberly Ehrhard Are Building a Franchise Legacy with Keke’s Breakfast Cafe

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Restaurant Operators Rally Against Biden Administration's Tip Credit Policy

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