So much for being there for the forgotten man and woman. Donald Trump’s administration is filled millionaires and billionaires who cannot relate to real people. They tend to think people would be fine if they only saved and did not spend their money on “booze, women, and moves,” as Republican Senator Chuck Grassley put it. Now, Trump’s people are trying to steal from servers.
The man in the Oval Office has been slashing and burning through everything President Barack Obama accomplished in his eight years in office. His latest trick is to make tips earned by servers disappear.
The Labor Department intends to change a rule so that employers of anyone who makes their living by earning tips can take them. This would apply to anyone who earns the federal minimum wage of a whopping $7.25 an hour plus tips working at very hard job.
President Obama’s 2011 rule said that those who get the tips do the lion’s share of working for them, so they should be able to keep the bulk of tips. This helped those restaurant, hotel, and bar workers earn more.
Trump’s ruling would let the employers decide what to do with the tip money. They could pool the tip money to share with those who do not earn tips, but it gets worse.
The Labor Department wrote in its announcement, according to CNN Money:
‘These “back of the house” employees contribute to the overall customer experience, but may receive less compensation than their traditionally tipped co-workers.’
The Trump rule would allow managers use the pooled tip money to add onto their existing building, lower the prices on their menus, or even increase the size of their dining space.
The progressive National Employment Law Project (NELP) Director Christine Owens told CNN:
‘Tips belong to the workers who have earned them — period. But today the Trump Labor Department has proposed a pathway for employers to keep the tips for themselves.’
Senior economist at the left-leaning Economic Policy Institute, Heidi Shierholz pointed at a line in the Labor Department announcement and told CNN:
‘Crucially, the rule doesn’t actually require that employers distribute pooled tips to workers.’
Ranking Democrat on the House Education and Workforce Committee released a statement on the matter:
‘The Trump Administration’s proposed rule would allow employers to pocket employees’ hard-earned tips as long as they pay tipped workers the woeful federal minimum wage of $7.25 per hour. Regardless of proponents’ claims, nothing in this proposed rule would require employers to redistribute tips to workers.’
The new rule must go through a 30-day public comment period before it can become final, but Trump’s people quit enforcing Obama’s rule last July.
Restaurant, hotel, and bar owners disliked the 2011 rule, because they said that it economically impacted their businesses. The National Restaurant Association filed suit against Obama’s Labor Department after the rule went into effect. The case landed in the heap before the Supreme Court this year, but the justices have not yet determined whether they will hear it.
Executive director of the Restaurant Law Center, which falls under the umbrella of the National Restaurant Association, Angelo Amador, released this statement about the new rule:
‘We applaud the Department of Labor’s review of tip regulations. We look forward to submitting comments from the restaurant industry on the new rulemaking.’
Featured Image via Getty Images/Drew Angerer.