“This rule change will make tipped workers even more vulnerable to exploitation and abuse,” said Saru Jayaraman of One Fair Wage. “What workers need now, more than ever is a full, fair minimum wage.”
Just hours before President Donald Trump surprised millions by pushing for enlarged stimulus checks in the new coronavirus relief package, his administration on Tuesday added to its extensive record of anti-worker policymaking by finalizing a regulatory change that enables employers to dispossess tipped workers of more than $700 million per year.
The new regulation (pdf)—long sought by the restaurant industry—expands tip pools “from front-of-the-house employees alone to include back-of-the-house employees” in the handful of states where servers receive the standard minimum wage. It also relaxes limits on the amount of nontipped work that can be done by tipped employees earning a subminimum wage, which exists in all but eight states. Continue reading