New Rule on Restaurant Tips Could Cost Women $4.6 Billion
INDIANAPOLIS - As women’s marches take place across the country this Saturday, time is running out to put in your two cents about a rule proposed by the Trump administration that a new report says could cost female workers $4.6 billion in tips a year.
«Tipped workers are going to see a huge hit to their take home pay, and employers will be enriched because the vast majority of tipped workers are women,» she states. «Because women earn lower wages, they are far more disproportionately harmed by this rule.»
The administration defends the change as a fairness issue, saying it will facilitate tip pooling, which would allow restaurants, for example, to take the wait staff›s tips and spread them around to the dishwashers and cooks.
The public comment period on regulations.gov ends Feb. 5.
In Indiana, wait staff can be paid $2.13 an hour - however, if the lower minimum wage plus tips the employee earns don›t add up to at least the full state minimum wage, the employer must make up the difference. Shierholz thinks the rule change would not end up helping non-tipped workers.
«They›re already paying those workers what they need to get workers in those jobs, and so if they do share any tips with workers at the back of the house, it will very likely be offset with declines in their base pay,» she points out.
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