Women would lose $4.6 billion in earned tips if the administrations tip stealing rule is finaliz
There are several tables in this article. What a shitass deal!!
I sent this article to my Senators and Rep.
Women would lose $4.6 billion in earned tips if the administration’s ‘tip stealing’ rule is finalizedOverall, workers would lose $5.8 billion
http://www.epi.org/publication/women-would-lose-4-6-billion-in-earned-tips-if-the-administrations-tip-stealing-rule-is-finalized-overall-tipped-workers-would-lose-5-8-billion/
Report • By Heidi Shierholz, David Cooper, Julia Wolfe, and Ben Zipperer • January 17, 2018
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Press release
The Department of Labor (DOL) has proposed a rule that would make it legal for employers to pocket their workers’ tips, as long as they pay those workers at least the minimum wage. The proposed rule rescinds portions of longstanding DOL regulations that prohibit employers from taking tips.1 We estimate that if the rule is finalized, every year workers will lose $5.8 billion in tips, as tips are shifted from workers to employers.2 Of the $5.8 billion, nearly 80 percent—$4.6 billion—would be taken from women who are working in tipped jobs.3
DOL has masked the fact that this rule would be a windfall to restaurant owners and other employers—out of the pockets of tipped workers—by making it sound as if this rule is about tip pooling. Of course, once employers have full control of tips, one of the things they could do with those tips is distribute them to “back of the house” workers like dishwashers and cooks. But the proposed rule does not require employers to distribute the tips, so employers would be no more likely to share tips with back-of-the-house workers than they would be to make any other choice about what to do with a business windfall, including using the money to make capital improvements to their establishments, to increase executive pay, or to line their own pockets.
Many employers pocket tips even now, when it is illegal for them to do so (for example, research on workers in Chicago, Los Angeles, and New York found that 12 percent of tipped workers had tips stolen from them by their employer or supervisor).4 The fact that illegal tip theft is so prevalent underscores that when employers can legally pocket tips, many will. And basic economic logic dictates that it is highly unlikely that back-of-the-house workers will get more pay. There is currently no limit to what these workers can be paid, so employers are already paying their back-of-the-house workers what they need to pay to attract workers willing to work in those jobs. If employers do share some tips with them, it will likely be offset by a reduction in their base pay, leaving their take-home pay largely unaffected.
The economic effects of this rule are as follows: (1) tipped workers will lose $5.8 billion a year in tips, (2) the take-home pay of back-of-the-house workers will remain largely unchanged, and (3) employers will get a $5.8 billion a year windfall. The $5.8 billion is 16.1 percent of the estimated $36.4 billion in tips earned by tipped workers annually and amounts to more than $1,000 per year on average across all tipped workers........................
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