Texas Roadhouse Management Corp. v. Department of Labor

**Texas Roadhouse Wins Dispute Over Restaurant Host Tips** This case was about whether restaurant hosts at Texas Roadhouse could be included in tip pools and whether the company could pay them the lower "tipped worker" minimum wage instead of the full minimum wage. The Department of Labor sued the restaurant chain, arguing that hosts don't provide direct service to customers and therefore shouldn't be treated as tipped employees. The court sided with Texas Roadhouse. The judge ruled that restaurant hosts are "direct service employees" because they interact directly with customers by greeting them, seating them, and helping with their dining experience. This means hosts can legally participate in tip pools where tips are shared among staff, and the restaurant can pay them the lower tipped minimum wage (currently $2.13 per hour federally) as long as their tips bring them up to regular minimum wage. **What this means for workers:** If you work as a restaurant host, your employer may be able to include you in tip pools and pay you the lower tipped wage rather than full minimum wage. However, your total pay (wages plus tips) must still equal at least the regular minimum wage. This ruling could affect how hosts are paid at restaurants nationwide.