Our friend Keith Wilson wrote this post a couple of weeks ago … 05 February … and I meant to re-blog it when I first read it. I actually thought I had shared it with you all, but I eventually figured out that I hadn’t, and by that time the re-blog button had disappeared, so I waited. Obviously, holding my breath for the return of the button is not working, so I will share Keith’s post in this manner, for this is too important and we really need to get the word out.
Please take just a minute to read the latest in our government’s attempt to help the rich get richer and ensure that the poor get poorer.
Independent views from someone who offers some historical context
On December 5, 2017, the Department of Labor under the guidance of the self-proclaimed populist President offered proposed regulations that would affect tipped employees. The 60 day comment period just expired, so unless the push back was convincing this proposal may become regulation. The proposal unwinds an Obama regulation which prohibits an employer from garnishing tips from workers who make at least the $7.25 minimum wage.
It should be noted that restaurant workers have a lesser minimum wage of only $2.13 which has been in place for twenty plus years. They can be paid an hourly wage this low, provided their tip income brings their total hourly pay to $7.25. As of May, 2017, the average combined wage and tip income for restaurant workers was $11.82 per hour.
In essence, the proposed regulation would allow an employer to garnish the extra tips above a total wage rate of $7.25. Now, the employer could be altruistic and reallocate this tip income to all workers, such as the cooks and buspeople (those that clean off the tables). This could also include the tipped worker who would receive a reallocated portion, but less than the direct tips garnished.
Many thanks, Keith, for allowing me to share this important information!