Paul DeCamp, Member of the Firm in the Employment, Labor & Workforce Management practice, in the firm’s Washington, DC, office, was quoted in Law360, in “5th Circ. Flips Injunction Ruling That Kept DOL Tip Rule Alive,” by Irene Spezzamonte. (Read the full version – subscription required.)

Following is an excerpt:

A Texas federal court should have prevented a U.S. Department of Labor rule regulating tipped wages from staying in place, the Fifth Circuit found, saying that the costs the rule imposes on employers were enough to show irreparable harm.

In a 2-1 published opinion Friday, the panel majority overturned the lower court's 2022 decision denying a bid by the Restaurant Law Center and the Texas Restaurant Association bid for a preliminary injunction on the DOL's rule determining when workers can earn full minimum wage. The majority said the lower court ignored the cost estimates the DOL and the business groups advanced while disregarding earlier guidance that nonrecoverable compliance costs usually cause irreparable harm.

As a result, the majority remanded the case back to the lower court for it to address the other prongs of the preliminary injunction test: whether the groups can succeed on the merits, whether the balance of equities tips in their favor and whether the injunction is in the public interest. …

Paul DeCamp of Epstein Becker Green, who is representing the groups, told Law360 on Monday that "now that the Fifth Circuit has made it clear that the Department of Labor's dual jobs regulation causes irreparable harm, the Restaurant Law Center and the Texas Restaurant Association look forward to presenting their arguments on the remaining injunction factors, as well as their summary judgment arguments, before our new district judge."


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