January 27, 2018

News From Partners: Labor Groups Demand DOL Withdraw Proposed "Tip Theft" Rule

Washington, DC - The Labor Coalition for Community Action, a coalition of the six constituency groups of the AFL-CIO, including the A. Philip Randolph Institute, Asian Pacific American Labor Alliance, Coalition of Black Trade Unionists, Coalition of Labor Union Women, Labor Council for Latin American Advancement, and Pride at Work, issued the following statement on the Department of Labor (DOL)'s proposed "tip theft" rule that shifts the ownership of tips from workers to employers.

"This proposed rule to steal hard-earned tips from the pockets of restaurant workers is utterly despicable. Instead of affirming that tips are the property of workers, the Trump administration is championing corporate greed and acting as an extension for the National Restaurant Association.

With tip theft already a common occurrence in the restaurant industry, the legalization to shift ownership of tips to employers is another example of working people being robbed of what they are due. Trickle down policies, such as this proposed rule, will maintain the status quo and wedge an even larger gap between the richest and the poorest.

If enacted, workers will lose an estimated $5.8 billion in tips, with 80% of that coming from women workers. With women and workers of color comprising the lowest paid segments of the industry, this rule would disproportionately impact the most vulnerable and feed into a cycle of poverty and economic instability.

We are committed to advocating for the rights of workers in all industries and to fighting against greedy policies that fuel into the systematic oppression of people of color, women, and LGBTQ workers. We demand that the Department of Labor withdraw this disgusting ‘tip theft’ rule immediately and call on it to do its job: to fight for workers, not employers."

To submit your own story and/or comments to the Department of Labor on the proposed rule, click here.

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