A waiter serves food at a restaurant near Times Square in New York City, U.S., December 16, 2021. REUTERS/Jeenah MoonRestaurants will be exposed to class actions, lawyer for trade groups told court - Some restaurants will face "bankruptcy-level litigation" if a Biden administration rule regulating the way tipped workers are paid is not blocked, a lawyer for two trade groups told a U.S. appeals court on Tuesday.
U.S. District Judge Robert Pitman in Austin, Texas in February declined to block the rule pending the outcome of the lawsuit. He said the groups had not shown the rule would cause the "irreparable harm" necessary to warrant blocking it. “This regulation forces employers to maintain records, because you'll get slaughtered in litigation if you don't,” DeCamp said.
The compliance costs of the rule average out to 10 minutes of work per business each week, Utrecht told the panel, which is not enough of a burden to block the rule from remaining in effect.
1. Underpay workers for years. 2. Regs change to pay workers more. 3. Restaurants:
Poor choice of words
I dunno...if your business model is built on the exploitation of your employees, maybe it's not a great model?
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