When you leave a tip at a restaurant, tavern, barbershop, nail salon or casino, you expect the person providing you service will get the well-deserved money. But, if the Trump Administration has its way, business owners could legally use these tips to pay all their workers minimum wage and pocket the rest.
- Ripoff Rule: The Department of Labor recently proposed a rule that would take tips from workers who earned them and give them to business owners. Currently, under a 2011 Obama administration rule, tipped workers are entitled to keep whatever they make. The Trump administration wants to let business owners pool these tips, use them to pay everyone minimum wage, and pocket the rest.
- Workers Could Lose Billions: The Economic Policy Institute estimates that this tip-stealing rule could cost workers $5.8 billion in lost income every year. Because women are more likely to be tipped workers and to earn lower wages, they’ll bear the greatest burden, losing an estimated $4.6 billion annually.
- Needed – Living Wage for All: Untipped workers, such as cooks and dishwashers, need better pay. The answer isn’t trusting employers to pool workers’ tips. It’s making the minimum wage a living wage and strengthening workers’ rights to win better pay and benefits by joining and organizing unions.