"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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