Bloomberg Law reports that congressional lawmakers are negotiating a funding bill for the government that would include a provision to calm controversy surrounding a proposed Department of Labor rule about pooling tips. The proposed DOL rule would reverse an Obama-era regulation stating that tips are the property of employees who earn them and cannot be distributed to other workers. The new rule would allow employers to require servers and other tip-earners to share tips with non-tip-earners, like kitchen staff. According to Bloomberg Law, lawmakers are considering language that would allow employers to mandate tip-pooling arrangements but ban management from participating in them. Even with the ban on management participation, some are critical of the idea: Rep. Bobby Scott (D-VA) is concerned that businesses will use tip-pooling to lower wages for “back-of-house workers.”
Relatedly, Bloomberg Law reports that DOL leadership convinced OMB Director Mick Mulvaney to release the tip-sharing rule without accompanying data showing that the rule could allow businesses to skim $640 million in tips; that number had originally been “billions of dollars.” Trump-appointed OIRA Administrator Neomi Rao objected to the release of the rule, preferring to include estimates showing how much workers could lose in tips to management. “It’s pretty apparent that in this case and potentially others, that the administration and OMB are willing to manipulate the cost-benefit numbers to make them look good for their attempts to roll back regulatory protections,” Amit Narang of Public Citizen told Bloomberg Law. “This is a transparency concern, a legal concern, and I think it’s got to be a concern for the legitimacy and the integrity of the deregulatory agenda writ large.”
On Tuesday, the Office of the United Nations High Commissioner for Human Rights expressed concern about reports that female workers and labor activists were subjected to “intimidation and harassment” after speaking out about working conditions at Samsung’s manufacturing plants in Vietnam. The Financial Times reports that the UN’s concern is embarrassing for Samsung and sensitive for Vietnam, which is a growing hub for low-cost manufacturing.
In today’s Washington Post, Alexander Hertel-Fernandez, assistant professor of international and public affairs at Columbia University, describes his new book Politics at Work: How Companies Turn Their Workers Into Lobbyists. In the book, he examines employers’ efforts to rally workers in favor of policies and candidates that their companies support.
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August 17
The Canadian government ends a national flight attendants’ strike, and Illinois enacts laws preserving federal worker protections.
August 15
Columbia University quietly replaces graduate student union labor with non-union adjunct workers; the DC Circuit Court lifts the preliminary injunction on CFPB firings; and Grubhub to pay $24.75M to settle California driver class action.
August 14
Judge Pechman denies the Trump Administration’s motion to dismiss claims brought by unions representing TSA employees; the Trump Administration continues efforts to strip federal employees of collective bargaining rights; and the National Association of Agriculture Employees seeks legal relief after the USDA stopped recognizing the union.
August 13
The United Auto Workers (UAW) seek to oust President Shawn Fain ahead of next year’s election; Columbia University files an unfair labor practice (ULP) charge against the Student Workers of Columbia-United Auto Workers for failing to bargain in “good faith”; and the Environmental Protection Agency (EPA) terminates its collective bargaining agreement with four unions representing its employees.
August 12
Trump nominates new BLS commissioner; municipal taxpayers' suit against teachers' union advances; antitrust suit involving sheepherders survives motion to dismiss
August 11
Updates on two-step FLSA certification, Mamdani's $30 minimum wage proposal, dangers of "bossware."