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 MurrayAdministration to give Senate briefing on coronavirus Conservative groups aim to sink bipartisan fix to 'surprise' medical bills Democrats request briefing on intel behind Trump's embassy threat claim MORE (D-Wash.) reached the deal with Labor Secretary Alexander AcostaAlex Alexander AcostaFlorida sheriff ends work release program criticized over Jeffery Epstein The Hill's Morning Report — Presented by National Association of Manufacturers — Whistleblower complaint roils Washington On The Money: Senate confirms Scalia as Labor chief | Bill with B in wall funding advanced over Democrats' objections | Lawyers reach deal to delay enforcement of NY tax return subpoena 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 TrumpSchiff pleads to Senate GOP: 'Right matters. And the truth matters.' Anita Hill to Iowa crowd: 'Statute of limitations' for Biden apology is 'up' Sen. Van Hollen releases documents from GAO investigation 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 MulvaneySenate Republicans confident they'll win fight on witnesses Hakeem Jeffries tells Senate in impeachment proceedings they should subpoena Baseball Hall of Fame after Jeter vote Video becomes vital part of Democrats' case against Trump 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 ScottHoyer: Democratic chairmen trying to bridge divide on surprise medical bills To support today's students, Congress must strengthen oversight of colleges Democratic lawmaker tears into DeVos: You're 'out to destroy public education' MORE (D-Va.) and Reps. Keith EllisonKeith Maurice EllisonMinnesota sues Juul over rise in youth vaping Jane Fonda calls for protecting water resources at weekly DC climate protest Progressives ramp up fight against Facebook MORE (D-Minn.), Mark TakanoMark Allan TakanoVA leader must demonstrate commitment to ending harassment GOP claims vindication, but Van Drew decision doesn't spark defections Mark Takano keeps using partisan tactics when legislating veterans issues MORE (D-Calif.) and Suzanne BonamiciSuzanne Marie BonamiciPelosi heading to Madrid for UN climate change convention Scientists join Democrats in panning EPA's 'secret science' rule Overnight Energy: Democrats call for Ross to resign over report he threatened NOAA officials | Commerce denies report | Documents detail plan to decentralize BLM | Lawmakers demand answers on bee-killing pesticide MORE (D-Ore.) said in a joint statement.