In today’s News & Commentary, Vice President Kamala Harris backs a proposal to end taxes on tips, Crooked Media Workers’ Union secures a contract, and the Eighth Circuit issues a potentially impactful ruling on forced arbitration. 

Elyse reported last Monday on Donald Trump’s backing of a plan to end income taxes on tips, part of his broader attempt to court support from workers and unions. The policy has been pushed by the Culinary Union, who endorsed Vice President Harris on Friday. 

On Saturday, Harris pledged to support that same proposal and end taxes on tips for service and hospitality workers. She also promised to push for minimum wage increases, something some workers and advocates have described as more in line with their policy preferences than the tax proposal. Other commentators have also cautioned against the tax policy on the grounds that it may encourage increased reliance on tips rather than pushing employers to pay fair living wages. 

Some Republicans in Congress have introduced legislation designed to end taxes on tips following Trump’s policy pledge. Senator Ted Cruz introduced the “No Tax on Tips Act” in June. A Yale University analysis of that bill found that it would impact just 2.5% of the labor force and 5% of bottom quartile earners. 

The Harris campaign declined to endorse any of the existing proposals. Instead, they stated a Harris-Walz administration would prioritize negotiating with legislators to craft a bill that includes eliminating the tipped minimum wage, raising the minimum wage, and building in restrictions to prevent exploitation of the policy by employers and the wealthy.  

Following up on more of Elyse’s reporting, on Friday the Crooked Media Workers’ Union reached a contract with the company following their one-day walk out last week. The company, which produces the Pod Save America podcast among other progressive political content, had been accused of employing union-busting tactics during the contentious year-long negotiations. 

As a part of the deal with the company, the union has now dropped those allegations and withdrawn unfair labor practice charges filed against Crooked Media. In a joint statement, the union and company expressed their hope that the contract could serve as a “new benchmark for the industry.”

Last Monday, a three-judge panel of the Eighth Circuit ruled against Chipotle, holding a former employee’s sexual harassment and abuse claims were not subject to a forced arbitration agreement due to the federal Ending Forced Arbitration of Sexual Assault and Sexual Harassment Act (“EFAA”), an amendment to the FAA. Bloomberg Law noted that the ruling could be especially impactful given the way the court reached its decision. The EFAA took effect on March 3, 2022, which was after both the date the misconduct occurred and when the ex-employee first notified Chipotle of their intent to bring suit. Nevertheless, the court held that “disputes” for the purpose of the EFAA arise when the plaintiff serves the legal complaint.

The Eighth Circuit is the first appeals court to rule on this matter, and the decision could set a beneficial precedent for affected workers in future cases.