by Donna on October 27, 2024 10:07 am
Trump talked about not taxing tips before Harris did, but he's also talked about this idea, which affects the same workers, and is something that Harris would never consider:
Employers would pocket $5.8 billion of workers’ tips under Trump administration’s proposed ‘tip stealing’ rule
On December 5, [2017,] the Trump administration took its first major step toward allowing employers to legally pocket the tips earned by the workers they employ. The Department of Labor (DOL) released a proposed rule that would allow restaurants to take the tips that servers earn and share them with untipped employees such as cooks and dishwashers.1 But, crucially, the rule doesn’t actually require that employers distribute “pooled” tips to workers. Under the administration’s proposed rule, as long as tipped workers earn minimum wage, employers could legally pocket those tips.
Evidence shows that even now, when employers are prohibited from pocketing tips, many still do. Research on workers in three large U.S. cities (Chicago, Los Angeles, and New York) finds that 12 percent of tipped workers had tips stolen by their employer or supervisor.2 Further, recent research shows that workers in restaurants and bars are much more likely to suffer minimum wage violations—meaning that they receive less than the applicable minimum wage—than workers in other industries. For tipped workers, some of these minimum wage violations occur when an employer confiscates tips.3
With that much illegal tip theft currently taking place, it’s clear that when employers can legally pocket the tips earned by their employees, many will. And although the bulk of tipped workers are in restaurants, tipped workers outside the restaurant industry—such as nail salon workers, casino dealers, barbers, and hairstylists—could also see their bosses start taking a cut from their tips.
epi.org
by Indy! on October 27, 2024 10:49 am
As someone who's actually worked for tips - I can tell you the number is probably far higher than 12% of owners stealing tips.
Let me start off with two words. I support Kammy. I support Kammy, but...