As we reported in January, President Donald Trump's Department of Labor is proposing a rule change that would mean restaurant servers and bartenders could lose a large portion of their earnings. The rule would overturn one put in place by the Barack Obama administration, which prevents workers in tipped industries from having their tips taken by their employers. Under the new rule, business owners could pay their waitstaff and bartenders as little as $7.25 per hour and keep all tips above that amount without having to tell customers what happened.
An independent analysis estimates this rule would steal $5.8 billion from the pockets of workers each year. A whopping $4.6 billion of that would come out of the pockets of working women. This is bigger than simply the well-deserved tips of restaurant workers. This is another example of extreme legislators, greedy CEOs and corporate lobbyists uniting in opposition to working people. They want to further rig the economic playing field against workers, people of color and women.
Last week, Reps. Rosa DeLauro (D-Conn.) and Katherine Clark (D-Mass.) offered up legislation that will strengthen protections for tipped workers and secure tips as the property of the workers who earn them. Department of Labor Secretary Alexander Acosta indicated that he will support Congress’ legislative efforts to stop companies from claiming ownership over tips instead of the workers who earn them.
Hundreds of thousands of you already have spoken out, sending comments of opposition to the rule straight to the Labor Department. It’s time for us to take the next step together. We can hold Trump’s Department of Labor accountable and make sure that Congress hears our opposition to this ridiculous and unfair change. Take action, and tell Acosta to support amendments to the Fair Labor Standards Act that will secure tips as the property of workers and oppose Trump’s rule legalizing wage theft.
