STATE:

Why NFIB

Take Action

Get Support

Stay Informed

Podcast Podcast

Careers Careers

Join Now

Home / News / Press Release /

Small Businesses Challenge DOL Tip Rule Regulation in New Brief

November 3, 2023

Small Businesses Challenge DOL Tip Rule Regulation in New Brief

WASHINGTON, D.C. (Nov. 3, 2023) – NFIB filed an amicus brief in the case Restaurant Law Center et al. v. United States Department of Labor at the U.S. Court of Appeals for the Fifth Circuit. The case concerns the Department of Labor’s (DOL) tip credit rule and the Fair Labor Standards Act. “The DOL’s final rule disproportionately impacts small businesses and restaurants,” said Beth Milito, Executive Director of NFIB’s Small Business Legal Center. “Requiring small business owners to split a job into sub-tasks and record the minutes and seconds devoted to each task will lead to confusion and difficulty in complying. Ultimately, the 80/20 rule will result in a decrease in higher-paying jobs for tipped employees in the hospitality industry. We ask the Court to reverse the district court’s decision.” The brief argues four main points: 1) the FLSA ensures employees receive the minimum wage, and industry data shows tipped employees receive tips that far exceed minimum wage, 2) compliance with the final rule is practically impossible, 3) consideration of a 15-minute portion of a shift further highlights the significant compliance issues raised by the 80/20 Rule, and 4) the final rule fails to provide guidance for the ever-evolving nature of the hospitality industry in a post-pandemic world. NFIB filed the amicus brief with the National Retail Federation, American Hotel and Lodging Association, and American Gaming Organization. The NFIB Small Business Legal Center protects the rights of small business owners in the nation’s courts. NFIB is currently active in more than 40 cases in federal and state courts across the country and in the U.S. Supreme Court.

Topics:

Labor

Legal

Get to know NFIB

NFIB is a member-driven organization advocating on behalf of small and independent businesses nationwide.

Learn More

February 2, 2026

Small Business Calls on Congress for Joint Employer Protections

NFIB sends a letter to the U.S. House Small Business Committee highlighting harmful legislation to small business and what Congress can do to protect franchise…

February 2, 2026

Small Businesses Urge Treasury to Destroy Beneficial Ownership Data

NFIB joined more than 100 trade associations to urge Treasury to destroy the unconstitutionally collected data from small businesses through beneficial ownersh…

February 2, 2026

Watch Now: NFIB’s Jared Weiser Interviewed on NBC Local News

NFIB was the only business group to speak out against burdensome legislation

January 30, 2026

Federal Update on Small Business Priorities

An episode of the Small Business Rundown podcast covers the successes from 2025 and the status of several important federal bills that could have an impact on …

Small Businesses Challenge DOL Tip Rule Regulation in New Brief

Related Articles