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NFIB Weekly News

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Restaurant Law Center v. Department of Labor concerns FLSA tip credit provision (05/17/2022)

NEW ORLEANS, La. (May 17, 2022) – NFIB filed an amicus brief in the case Restaurant Law Center, et al. v. United States Department of Labor at the United States Court of Appeals for the Fifth Circuit. The case challenges DOL’s 2021 final rule on the Fair Labor Standards Act (FLSA) tip credit provision.

“The current rule from the Department of Labor creates many administrative burdens for small employers with tipped workers,” said Karen Harned, Executive Director of NFIB’s Small Business Legal Center. “The department is exceeding its rulemaking authority on this issue and ultimately creating onerous and unworkable regulations for small business owners.”

NFIB’s amicus brief argues that the rule, which attempts to limit when employers can use the sub-minimum wage, or tip credit, conflicts with the FLSA and makes compliance nearly impossible for small business owners. The rule offers conflicting guidance on how employers should categorize tip-producing work and imposes significant time-keeping issues. NFIB asks the Fifth Circuit to reverse the district court’s decision and remand to the district court with instructions to enter a preliminary injunction enjoining the Department from enforcing the final rule pending final judgment in the case.

NFIB filed the amicus brief with the National Retail Federation, American Hotel and Lodging Association, and American Gaming Association.


Business Climate

Small Business Owners Object To COVID-19 Aid Redirection Proposal (04/19/2022)

The Wall Street Journal (4/18, Omeokwe, Steele, Andrews, Subscription Publication) reported that small business owners are bristling over a congressional proposal that would redirect unspent money from COVID-19 small business aid programs to provide $10 billion for the federal government’s pandemic health response, including vaccines and therapeutics.


Small Business Marketing

Expert Criticizes Email For Customer Communication, Says Texting Is Superior (04/19/2022)

In a USA Today (4/14, Deerwester) column, lawyer, speaker, and author Steve Strauss wrote that “email is actually a fairly horrible way for business generally, and small business, in particular, to communicate with customers. Unopened and unwanted, ignored and abandoned, emails simply don’t get through anymore.” Strauss went on to argue that texting is superior to emailing.


Wages and Benefits

House Democrats Introduce Bill To Require Companies Provide Time Off For Voting (04/19/2022)

Reuters (4/11, Warburton) reported House Democrats on Monday “proposed legislation requiring employers give their workers paid time off to vote, following failed attempts by Congress to pass major voting rights legislation earlier this year.” In a statement, Rep. Nikema Williams (D-GA) said that the “Time Off to Vote Act” would help states reduce lines at polling places, while Rep. Andy Levin (D-MI) said it would “ensure no worker has to sacrifice their wages or jeopardize their job security to exercise their sacred right to vote.”


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