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.Read More