Tip Worker Alert! Act by Feb. 5 on Pending DOL Rule Change!
The Department of Labor (DOL) has proposed a rule that would make it legal for employers to pocket their employees' tips, as long as their workers are paid at least the minimum wage. Your comments are needed before February 5. Learn more and share widely!
As we know, artists of all disciplines work several jobs, including those involving earned tip income. The Department of Labor (DOL) has proposed a rule that would make it legal for employers to pocket their employees’ tips, as long as their workers are paid at least the minimum wage.
The economic effects of this rule are as follows: (1) tipped workers will lose $5.8 billion a year in tips, (2) the take-home pay of back-of-the-house workers will remain largely unchanged, and (3) employers will get a $5.8 billion a year windfall. The $5.8 billion is 16.1 percent of the estimated $36.4 billion in tips earned by tipped workers annually and amounts to more than $1,000 per year on average across all tipped workers. ~ Women would lose $4.6 billion in earned tips if the administration’s ‘tip stealing’ rule is finalized, Economic Policy Institute, Jan. 17, 2018
Employers would have absolute discretion as to where and how tips are apportioned, and not necessarily among workers. We encourage you to go to Economic Policy Institute and read their report thoroughly, then act.
Your comments are needed by 11:59 PM, February 5!
The comment period has been extended to February 5, 2018. The Department of Labor is required to read all public comments before deciding on the direction of the final rule. To submit comments electronically to the Department of Labor, Wage and Hour Division:
https://www.regulations.gov/docket?D=WHD-2017-0003
All comments must include:
Wage and Hour Division, Department of Labor
RIN: 1235-AA21
Read Tips for Submitting Effective Comments:
https://www.regulations.gov/docs/Tips_For_Submitting_Effective_Comments.pdf
For comments by mail, address them to:
Melissa Smith
Director of the Division of Regulations, Legislation, and Interpretation
Wage and Hour Division
U.S. Department of Labor, Room S-3502
200 Constitution Avenue NW
Washington, DC 20210
For further instructions read:
https://www.federalregister.gov/documents/2017/12/15/2017-27085/tip-regulations-under-the-fair-labor-standards-act-flsa
Share widely!