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ROSEN DENOUNCES ADMINISTRATION’S COVER-UP OF ANALYSIS PROVING NEW TIP POOL RULE WOULD HARM WORKERS

February 1, 2018
Press Release

WASHINGTON, D.C. -- Today, Congresswoman Jacky Rosen (NV-03) released the following statement responding to the U.S. Department of Labor’s (DOL) cover-up of an internal analysis that showed how its proposed change to the tip pool rule will harm workers by transferring billions of dollars from employees to businesses:

“The Department of Labor’s efforts to hide this taxpayer-funded internal analysis shows how far the Administration is willing to go to mislead the American people,” said Rosen. “It has been clear since DOL announced this tip pool rule change that it would harm the financial well-being of millions of workers who have fairly earned their tips. I am opposed to this unfair rule change and the attempt to cover up the truth about what it would mean for tipped workers who deserve fair pay.”

 

BACKGROUND: In December 2017, Congresswoman Rosen joined her colleagues to send a letter to Labor Secretary Alexander Acosta requesting DOL extend the comment period on the proposed rule change by an additional 30 days due to the lack of quantitative analysis. The public may comment on the proposal until February 5. The proposed rule would roll back portions of DOL regulations that clarify that tips are the property of an employee, regardless of whether an employer takes a tip credit to pay the worker the minimum wage, or pays the tipped worker the full minimum wage. The current DOL proposal would allow employers to pool and pocket the tips of workers who are paid the full minimum wage, without requiring employers to then distribute the pooled tips to workers.

 

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