Civil Rights Community to Acosta: Rescind the ‘Tip Rule’

Economic Justice News 03.1,18

WASHINGTON – The Leadership Conference on Civil and Human Rights, along with several organizations that serve on its Employment Task Force, today wrote Secretary of Labor Alexander Acosta, noting their deep concerns in light of reports suggesting that the department had prepared, but withheld, unfavorable economic analysis conducted by career employees. The analysis was on the impact of the department’s Notice of Proposed Rulemaking (NPRM) on Tip Regulations under the Fair Labor Standards Act (FLSA). The groups urged him to release the analysis and rescind the proposed rule.

As the groups wrote: “We are deeply troubled by the possibility that senior political appointees at DOL may have deliberately excluded unfavorable economic analysis conducted by career civil service employees…  As Secretary of the Department of Labor, it is your responsibility to properly supervise political appointees and to prevent them from improperly politicizing rulemaking.”

The proposed rule seeks to rescind portions of tip regulations the Department issued in 2011, and would reverse the Department’s position that tips are the property of employees who earned them. Under the proposed rule, employers could legally pocket tips earned by their employees, so long as tipped workers are paid the minimum wage. This rule would have a disproportionately negative impact on women – particularly women of color — who are overrepresented in the tipped workforce.

The full letter to Secretary Acosta is available here.

In February, The Leadership Conference submitted comments on the proposed rule, which are available here.

The Leadership Conference on Civil and Human Rights is a coalition charged by its diverse membership of more than 200 national organizations to promote and protect the rights of all persons in the United States. The Leadership Conference works toward an America as good as its ideals. For more information on The Leadership Conference and its member organizations, visit www.civilrights.org.