The Trump administration today proposed rescinding an Obama-era tip-pooling rule that prevents employers from redistributing servers’ tips to back-of-house employees.
The 2011 rule prevented employers from dividing tips, giving a cut to kitchen staff and others who don’t receive tips directly. The Trump administration’s proposal would apply only to employees already making minimum wage — not “tip-credit” employees whose base pay is below minimum wage.
Under the proposal, workplaces “would have the freedom to allow sharing of tips among more employees,” DOL said in a statement, adding that it “would help decrease wage disparities between tipped and non-tipped workers.”
In a statement, National Employment Law Project Executive Director Christine Owens said change amounts to “a wholesale attack on restaurant workers and the meager federal protections they have for their pay.”
“Today the Trump Labor Department has proposed a pathway for employers to keep the tips for themselves,” she said.
A 30-day comment period will begin once the proposal is published in the Federal Register tomorrow.
Report via Politico Pro
Compensation is a technical topic for HR wonks. “How much is your salary?” used to be considered a socially boorish question, but it seems like everyone is talking about wages and pay.
The minimum wage, wage theft and tipping are all in the news today. Who’s saying what? Let’s start with this.
“It is time we end the so-called tipped minimum wage,” she said at a rally at the Javits Center on Wednesday. “We are the only industrialized country in the world that requires tipped workers to take their income in tips instead of wages.”
She continued, to loud cheers, to explain how tipped workers have been paid as little as $2.30 an hour.
“That’s shameful,” she said.
From a report in the New York Times comes news of a new app for day laborers to help document wage theft.
After three years of planning, an immigrant rights group in Jackson Heights is set to start a smartphone app for day laborers, a new digital tool with many uses: Workers will be able to rate employers (think Yelp or Uber), log their hours and wages, take pictures of job sites and help identify, down to the color and make of a car, employers with a history of withholding wages. They will also be able to send instant alerts to other workers. The advocacy group will safeguard the information and work with lawyers to negotiate payment.
Stay tuned on this one. Things will remain hot throughout 2016.