Did the Trump Administration Purposely Withhold the Analysis on the Controversial Tip-Pooling Proposal?

Did the Trump Administration Purposely Withhold the Analysis on the Controversial Tip-Pooling Proposal?

A few weeks ago, we reported that the Department of Labor (DOL) had proposed legislation to make it legal for business owners to collect restaurant workers tips as long as they are paying them at least the  minimum wage. 

Allegedly, the inspector general is now investigating claims that the DOL tried to hide an internal analysis that estimated that tipped workers as a whole would make billions of dollars less. In a recent report from “Bloomberg,” the publication said that the DOL purposely did not publish the cost-benefit analysis like they usually do because the rule was determined to be detrimental to tipped workers’ income.

The Economic Policy Institute already published a report with an analysis.

"We estimate that if the rule is finalized, every year workers will lose $5.8 billion in tips, as tips are shifted from workers to employers. Of the $5.8 billion, nearly 80 percent—$4.6 billion—would be taken from women who are working in tipped jobs," writes the "Economic Policy Institute" (EPI.) 

Hundreds of thousands have given the DOL feedback regarding the rule and the comment period ended earlier this week.

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"Tip Stealing" Rule Proposed Would Take $5.8 Billion From Restaurant Workers

"Tip Stealing" Rule Proposed Would Take $5.8 Billion From Restaurant Workers

The Department of Labor (DOL) has proposed controversial legislation that would be detrimental to tipped restaurant workers, but would put more money into the pockets of the operators and owners. 

The rule would make it legal for business owners to collect restaurant workers tips as long as they are paying them at least the minimum wage. 

"We estimate that if the rule is finalized, every year workers will lose $5.8 billion in tips, as tips are shifted from workers to employers. Of the $5.8 billion, nearly 80 percent—$4.6 billion—would be taken from women who are working in tipped jobs," writes the "Economic Policy Institute" (EPI.)

The EPI broke the $5.8 million down by gender and race too--

  • Non-hispanics tipped employees would lose $3.5 billion
  • Black non-Hispanic would lose $480.2 million
  • Hispanic workers would lose $1.4 billion
  • Asian workers would lose $382.5 million.

Proponents of the rule argue that the tips could than be distributed to kitchen workers. 

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