<ul><li>The Biden administration will discard its 2021 rule updating Fair Labor Standards Act tip credit regulations about 3 1/2 months after a federal court vacated the regulation.</li><li>DOL said its latest action, which is scheduled to be published in the Federal Register Dec. 17, will remove the updated tip credit rule and reinstate the regulatory text as it existed prior to the rule’s 2021 effective date.</li><li>The rule aimed to address situations in which employees perform both tipped as well as non-tipped work, also known as a 'dual job.'</li><li>The 5th U.S. Circuit Court of Appeals vacated the rule in August, holding that it violated the Administrative Procedure Act and applied the FLSA’s tip credit in a manner inconsistent with the text of the law.</li></ul>

DOL withdraws tip credit rule

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