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While monkeying around over the past week or so, I took a break from writing. By now, most of you have heard last week’s news about a Texas federal judge setting aside the FTC’s Noncompete Rule. But on Friday, the Fifth Circuit followed up with a decision vacating a U.S. Department of Labor final rule limiting the time tipped employees can spend in non-tipped activities when the employer receives a tip credit.
Under the DOL rule, which took effect in December 2021, an employer can take a tip credit only when the tipped employee is performing tip-producing work (think: a