Trump ‘Tip Stealing’ Rule Would Cost Workers $5.8 Billion Per Year

Labor News

"Instead of giving workers a badly needed boost to their paycheck, the Trump administration is actively making it legal to steal tips from working people," Heidi Shierholz, EPI's director of policy, concluded in a statement. (Photo: Dave Dugdale/Flickr/cc)

Reprinted from Common Dreams by Jake Johnson on January 17, 2017.

“President Donald Trump’s war on workers has spawned a number of disastrous policy moves, from cuts to federal employees’ pay increases to directives making it harder for workers to unionize,” writes Jake Johnson in Common Dreams. “But one of the ‘nastiest’ policy shifts Trump is pursuing is a rule that would allow companies to steal their employees’ tips—which, according to a new report, would cost workers $5.8 billion a year.

“Published by the Economic Policy Institute (EPI) on Wednesday, the analysis also details the disproportionate impact the proposed rule would have on women, whose tips would account for nearly 80 percent—$4.6 billion—of the total stolen by employers.

“By contrast, the ‘tip stealing’ rule—introduced by the Department of Labor in December—’would be a windfall to restaurant owners and other employers,’ who would essentially have total control over workers’ tips, as long as they pay the minimum wage, EPI finds. …

Common Dreams 1/17

About Jeffrey Burman 3293 Articles
Jeff Burman represents assistant editors on the Guild’s Board of Directors. He can be reached at jeffrey.s.burman.57@gmail.com.

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