Trump’s Department Of Labor Wants Employers To Keep Workers’ Tips: Report
The U.S. Department of Labor reportedly wants a new rule that would allow employers to keep their employees’ tips as long as employers pay those workers at least the minimum wage.
This new rule would overturn longtime regulations that ban employers from taking employees’ tips, which is wage theft.
According to the Economic Policy Institute, if this new rule goes into effect “workers will lose $5.8 billion in tips, as tips are shifted from workers to employers.2 Of the $5.8 billion, nearly 80 percent—$4.6 billion—would be taken from women who are working in tipped jobs.”
The Department of Labor has reportedly claimed this new rule is actually about tip pooling and spreading tips to “back of the house” employees.
However, employers are not required to distribute the tips among the workers, and could simply keep the money.