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Women Most Hurt by Labor Department’s “tip stealing” Rule
A new analysis estimates American women could lose $4.6 billion in tips a year if finalized
The Department of Labor (DOL) has proposed a rule that would legally enable employers to pocket their workers’ tips — as long as employers pay their workers at least minimum wage, which is a measly $7.25 nationally (albeit higher in some cities and states).
The agency's proposal would repeal existing portions of regulations that currently prohibit employers from taking workers’ tips.
A new analysis by the Economic Policy Institute (EPI), a nonprofit think tank, estimates American workers could lose up to $5.8 billion in tips if the proposal is finalized; moreover, they estimate that women would be impacted the most. According to the report, 80 percent of tipped jobs — ranging from restaurant workers to bartenders to hair stylists — employ women, and if implemented, this cohort of women could lose $4.6 billion in tips.
“Because women are both more likely to be tipped workers and to earn lower wages, this rule would disproportionately harm them,” the report states.
The initial announcement from the Department of Labor sold the rule as giving workplaces the “freedom” to share tips with more employees. “The proposal would help decrease wage disparities between tipped and non-tipped workers – an option that is currently restricted by a rule promulgated in 2011 that has been challenged in a number of courts,” the statement says.
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