Spending bill prevents employers from pocketing tips under tip-pooling rule

Spending bill prevents employers from pocketing tips under tip-pooling rule
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The $1.3 trillion spending deal released late Wednesday night includes language to prevent employers from being able to steal workers’ tips under the Labor Department’s controversial tip-pooling rule.

Sen. Patty MurrayPatricia (Patty) Lynn MurrayOvernight Health Care — Presented by the Association of American Medical Colleges —Dems, health groups demand immigrant children be quickly reunited with families White House releases sweeping proposal to reorganize government Democrats protest Trump's immigration policy from Senate floor MORE (D-Wash.) reached the deal with Labor Secretary Alexander AcostaRene (Alex) Alexander AcostaSmall businesses just scored a win on health-care costs RNC chairwoman, Labor secretary pull out of annual Latino conference New Labor rule will be a big health care boon for small businesses MORE to add a rider in the bill that amends the Fair Labor Standards Act to prevent employers, managers or supervisors from pocketing workers’ tips regardless of whether they earn gratuities on top of a full minimum wage.

The language gives workers the right to sue to recover any stolen tips with added damages and gives the secretary of Labor the ability to impose civil penalties on employers who violate the law.

“When President TrumpDonald John TrumpGOP lawmakers preparing to vote on bill allowing migrant children to be detained longer than 20 days: report Wasserman Schultz: Infants separated from their parents are in Florida immigrant shelters Ex-White House ethics chief: Sarah Sanders tweet violates ethics laws MORE proposed a rule that would have allowed corporations to pocket workers’ tips for themselves, workers across the country organized and made their voices heard,” Murray said in a statement.

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“Those workers sent the Trump Administration a message — and I’m pleased that Secretary Acosta listened, reversed course, and worked with me on legislation to make sure that big businesses can’t steal their workers’ tips. For the millions of workers who rely on their tips to pay their bills and support their families, most of whom are women, this change comes as a sigh of relief,” she said.

Acosta has been under fire since the rule was first proposed in December to allow employers to pool the tips of workers who make the full minimum wage and split them with nontipped workers.

The rule does not apply to workers who make less than a full minimum wage and use tips to supplement their pay, but labor groups said there was nothing in the regulation to stop employers from pocketing a portion of employees’ tips.

A Bloomberg Law report later revealed agency officials had withheld an unfavorable report that showed workers stand to lose billions in gratuities if the rule is finalized.

Democrats, labor groups and 17 state attorneys general have since demanded Acosta withdraw the rule.

And in a second report Wednesday morning, Bloomberg Law reported that Acosta convinced Office of Management and Budget (OMB) Director Mick MulvaneyJohn (Mick) Michael MulvaneyMulvaney aims to cement CFPB legacy by ensuring successor's confirmation On The Money — Sponsored by Prudential — Trump floats tariffs on European cars | Nikki Haley slams UN report on US poverty | Will tax law help GOP? It's a mystery Democrat says he recommended Trump's budget director for his job MORE to overrule the nation’s regulatory czar to release the rule.

OMB fired back against that report Wednesday afternoon.

In a statement to The Hill, office spokesman Coalter Baker said OMB historically does not comment on the deliberative process, but is making an exception in this case.

"We will make an exception now, as the premise of this reporting is false: there is zero daylight between Director Mulvaney and [Office of Information and Regulatory Affairs] Administrator [Neomi] Rao on regulatory policy," he said. 

Top Democrats on the House Education and the Workforce Committee said Wednesday they will be requesting a hearing to examine the department's conduct and Acosta’s role in this controversy.

“This latest report from Bloomberg Law that Labor Secretary Acosta urged OMB Director Mick Mulvaney to exclude a legally required analysis only intensifies existing concerns about the integrity of the rulemaking process for its proposed rule to allow employers to keep and control how to redistribute workers' tips,” Committee ranking member Rep. Bobby ScottRobert (Bobby) Cortez ScottOvernight Defense: Defense spending bill amendments target hot-button issues | Space Force already facing hurdles | Senators voice 'deep' concerns at using military lawyers on immigration cases House Dems demand answers from HHS on DOJ's ObamaCare decision Overnight Health Care — Sponsored by PCMA — DOJ move against ObamaCare sets off frenzy MORE (D-Va.) and Reps. Keith EllisonKeith Maurice EllisonFTC plans to reexamine how it polices tech companies The Hill's Morning Report — Sponsored by PhRMA — GOP lawmakers race to find an immigration fix Voters should keep eye on 2018 races for state attorneys general MORE (D-Minn.), Mark TakanoMark Allan TakanoHouse panel advances major VA reform bill Spending bill prevents employers from pocketing tips under tip-pooling rule Veterans Health Administration needs stronger recruitment methods MORE (D-Calif.) and Suzanne BonamiciSuzanne Marie BonamiciLawmakers, media serve up laughs at annual 'Will on the Hill' Congress — when considering women’s health, don’t forget about lung cancer Overnight Energy: Two top Pruitt aides resign at EPA | 17 states sue EPA over car emissions rules | Volkswagen to pay West Virginia .5M over emissions cheating MORE (D-Ore.) said in a joint statement.