Outcries from the people can be heard in light of a new administration rule that has come to surface. Trump seeks to dismantle Obama’s Labor Department rule that has been in place for the last six years, which presses the idea that tips are given to the employee who earned them. Trump’s new plan suggests that tips be pooled together, in an attempt to ensure those that don’t necessarily work as much, or even receive tips at all, receive equal earnings.
This could drastically impact the overall wages of your average waiter/waitress who generally receive a significant portion of their paycheck through the tips they earn.
Even worse, in an article written by CNN they pointed out something that was overlooked by most and proves even more frightening for employees. Hidden within the document is a clause that states “managers could use pooled tip money to make structural improvements, like expanding the dining area, or to lower menu prices.”
Heidi Shierholz, senior economist at the left-leaning Economic Policy Institute spotted this provision and warned “Crucially, the rule doesn’t actually require that employers distribute pooled tips to workers.”
Several other Democratic representatives have issued comments on the new proposed rule such as Bobby Scott from the House Education and Workforce. He advised “The Trump Administration’s proposed rule would allow employers to pocket employees’ hard-earned tips as long as they pay tipped workers the woeful federal minimum wage of $7.25 per hour. Regardless of proponents’ claims, nothing in this proposed rule would require employers to redistribute tips to workers.”
Not everyone is opposed to this proposed new ruling. The Restaurant Law Center issued an official statement on their thoughts commending the enforcement. “We applaud the Department of Labor’s review of tip regulations,” Executive Director Angelo Amador conveyed. “We look forward to submitting comments from the restaurant industry on the new rulemaking.”
Nothing is set in stone as the new plan still needs to go through a 30 day public comment period, however, it is clear Trump and his administration feel major change is necessary in how the restaurant industry currently operates.