Statement on Department of Labor's Proposed Rule Authorizing Tip Theft

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Click here to read EPT's comment recommending withdrawal of the proposed rule.

From: Equal Pay Today!, a Project of the Tides Center

Contact: info@equalpaytoday.org, 202-588-7616, www.equalpaytoday.org

Washington, DC -- Equal Pay Today! – a non-partisan collaboration of organizations working to close the gender wage gap – joined women’s and labor rights advocates in expressing extreme disappointment at yesterday’s revelation that the Department of Labor buried internal economic analysis that would have benefited the nation’s tipped workers and cast doubt on the agency’s Notice of Proposed Rulemaking (NPRM), RIN 1235-AA21, on Tip Regulations under the Fair Labor Standards Act (FLSA). Joi Chaney, Equal Pay Today's Executive Director released the following statement:

“Today Equal Pay Today joined millions of tipped workers – most of whom are women – and their advocates in expressing outrage at the news that the Department of Labor covered-up internal economic analysis that showed their proposed tip rule could cost tipped workers billions in lost tips.”

“The rule, which would free employers to seize the tips of their employees, was already a proverbial scandal, but now we’ve learned that there was an actual scandal. Americans expect their federal regulatory agencies to operate above board and based on facts. To learn that they received the facts and then buried them is nothing short of taxpayer betrayal. The analysis should have been made public.”

“Two-thirds of tipped workers are women. Many of those women support families and doing so on the minimum wage and tips is hard enough. Indeed, a minimum wage that is no living wage is a major contributor to the gender wage gap and family economic insecurity. Thus, this proposed tipped rule is yet another blow to women.”

“The good news is that the Administration still has time to redeem itself. As we noted in a formal comment posted to the federal register, we encourage the Department of Labor to withdraw this ill-advised proposal immediately and re-focus itself on growing incomes and improving working conditions for America’s workers not aiding and abetting the theft of their income by corporate interests.”

Click here to read EPT's comment recommending withdrawal of the proposed rule.

Equal Pay Today is one of many voicing concerns with this decision, including several of our member organizations:*

Equal Rights Advocates

National Employment Law Project

National Partnership for Women and Families

National Women’s Law Center

Restaurant Opportunities Centers United

*This list will be updated online at http://www.equalpaytoday.org/news/.