Dems urge Labor chief to delay new rule on workers' tips

Dems urge Labor chief to delay new rule on workers' tips
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House Democrats are calling on Labor Secretary Alexander AcostaRene (Alex) Alexander AcostaTop aide to Labor secretary to leave amid friction with White House George Conway slams Trump for calling Biden 'creepy': You 'palled around with Jeffrey Epstein' Melania Trump expands mission of 'Be Best' on its one-year anniversary MORE to give the public more time to comment on a proposal to roll back the Obama-era rule that banned employers from pooling workers' tips.

In a letter Monday, 46 Democrats including Rep. Bobby ScottRobert (Bobby) Cortez ScottTop Trump health official warned against controversial ObamaCare changes in private memo Top Trump health official warned against controversial ObamaCare changes in private memo Centrist Democrats raise concerns over minimum wage push MORE (Va.), Keith EllisonKeith Maurice EllisonHillicon Valley: Facebook unveils new cryptocurrency | Waters wants company to halt plans | Democrats look to force votes on election security | Advertisers partner with tech giants on 'digital safety' | House GOP unveils cyber agenda Hillicon Valley: Facebook unveils new cryptocurrency | Waters wants company to halt plans | Democrats look to force votes on election security | Advertisers partner with tech giants on 'digital safety' | House GOP unveils cyber agenda State attorneys general demand that Congress take action on election security MORE (Minn.) and Mark TakanoMark Allan TakanoSteyer group targeting 12 congressional Democrats over impeachment Steyer group targeting 12 congressional Democrats over impeachment ICE does not know how many veterans it has deported, watchdog says MORE (Calif.) asked Acosta to extend the current 30-day comment period to 60 days.

The Labor Department issued a proposal earlier this month to change the Fair Labor Standards Act regulation and allow employers to pool the tips of workers who make the minimum wage and share them with non-tipped workers. 

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The Democrats said the proposed rule would allow employers to pocket employee tips or redistribute them among employees, reversing the department’s more than 40-year position that tips are the property of the employee who earns them.

The proposed rule is expected to impact nearly 1.3 million tipped workers, but only those who make the standard minimum wage. Workers who make less than the minimum wage and rely on tips to supplement their pay were not part of the proposed rule.

The Democrats said the Labor Department failed to provide a quantitative analysis of the costs and benefits of the rule change. Extra time, they said, is needed to give those impacted by the rule time to provide meaningful input.

The National Restaurant Association has been fighting hard for the rule change to eliminate what it has said is a pay disparity between servers in the front of the house who receive tips and staff in the kitchen who do not.

“We applaud the Department of Labor’s review of tip regulations,” Angelo Amador, the group’s executive director, said in a statement when the proposed rule was released earlier this month.

“We look forward to submitting comments from the restaurant industry on the new rulemaking.”