Attention Restaurant Workers! Mad King Trump Wants To Give Restaurant Owners Your Tips!
Restaurant workers who rely on tips to survive could receive a massive pay cut. The Trump administration wants to take away your tips and put them in the pocket of the restaurant owner.
The Trump Administration is proposing rescinding an Obama-era rule that stated tips are the property of the servers. Trump’s Labor Department wants to change the rule to say the restaurant owner is the owner of the tips.
As a result, the administration’s proposal would allow restaurant owners to collect all the tips and do whatever they want with them.
Thus, restaurant owners could keep diners in the dark and pocket all the tips for themselves.
This “reverse Robin Hood” scheme would take money out of the pockets of low-wage workers and give it to business owners. It is just one more example of “trickle-down” economic policy masquerading as pro-worker reform.
The National Restaurant Association has been aggressively lobbying for this since Trump became president in 2017.
If the proposed rule takes effect, restaurant owners would feel they have a blank check to siphon tips away.
However, the Labor Department has offered no cost-benefit analysis on the proposal. A cost-benefit analysis is standard practice in the federal government when there is a regulatory rule change. However, in this case, this has not been done.
OIRA Administrator Neomi Rao, expressly testified at her Senate confirmation hearing that this kind of cost-benefit analysis is important even in deregulatory actions.
Labor unions and activists say implications of this potential rule change are too great not to do a cost-benefit analysis. So why a cost-benefit analysis was not done is a great mystery.
Workers say restaurant customers shouldn’t allow the Trump administration to make them complicit in stealing from them.