The Department Of Labor Has Proposed A Rule That Would Make It Legal For Employers To Pocket Their Workers’ Tips. | WHAT REALLY HAPPENED


The Department Of Labor Has Proposed A Rule That Would Make It Legal For Employers To Pocket Their Workers’ Tips.

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.2Of the $5.8 billion, nearly 80 percent—$4.6 billion—would be taken from women who are working in tipped jobs.3

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