In today’s news and commentary, former President Trump attempts to win over voters with a pledge to eliminate taxation of tips and the Major League Baseball Players Association accuses Bad Bunny’s sports agency of providing clients and prospective clients with improper inducements.
At a campaign rally in Las Vegas, Nevada, former President Donald Trump pledged to eliminate taxes on tipped earnings for hospitality workers. Changes to this wage and the way it is taxed require an act of Congress. The secretary-treasurer of the Culinary Workers Union Local 226, Ted Pappageorge, noted that “relief is definitely needed for tip earners, but Nevada workers are smart enough to know the difference between real solutions and wild campaign promises.” Under current tax law, workers’ tips are taxed at the same rate as their regular income, and many employers report worker tips directly to the IRS. A tipped employee is defined as one that earns more than $30 per month in tips. The Federal tipped minimum wage sits at $2.13 per hour, though employers must supplement where tips received do not bring the worker up to the federal minimum hourly wage. On July 1, 2024, the state of Nevada will institute a uniform minimum wage of $12 an hour regardless of whether workers earn tips or not. In 2025, Congress will have the opportunity to rewrite tax policy. President Biden has called for increasing the minimum wage and eliminating the tipped minimum wage.
The Major League Baseball Players Association (MLBPA) accused a sports agency run by rapper Bad Bunny of “a series of grave violations.” Benito Martinez, who goes by Bad Bunny on stage, co-founded Rimas Sports with two agents in order to represent Latin athletes. The union alleges that the agency gave improper gifts to athletes they were trying to represent, including concert and basketball tickets, as well as a $200,000 interest-free loan and a $19,500 signing gift. All agents working in the MLB must be certified through the MLBPA. The union’s agent regulations stipulate that agents are not allowed to provide or promise to provide any money or other thing of value to any player for the purposes of retaining or recruiting that player. Rimas Sports faces $400,000 fines, while its lead agents are looking at potential years-long suspensions from representing MLB athletes. The agency filed a federal lawsuit in a Puerto Rican District Court accusing the MLBPA of discrimination and bias in its investigation of the agency’s business practices. The agency struck out in its attempts to appeal an arbitrator’s ruling and in obtaining a temporary restraining order that would have allowed the agents to continue representing clients.
Daily News & Commentary
Start your day with our roundup of the latest labor developments. See all
November 21
The “Big Three” record labels make a deal with an AI music streaming startup; 30 stores join the now week-old Starbucks Workers United strike; and the Mine Safety and Health Administration draws scrutiny over a recent worker death.
November 20
Law professors file brief in Slaughter; New York appeals court hears arguments about blog post firing; Senate committee delays consideration of NLRB nominee.
November 19
A federal judge blocks the Trump administration’s efforts to cancel the collective bargaining rights of workers at the U.S. Agency for Global Media; Representative Jared Golden secures 218 signatures for a bill that would repeal a Trump administration executive order stripping federal workers of their collective bargaining rights; and Dallas residents sue the City of Dallas in hopes of declaring hundreds of ordinances that ban bias against LGBTQ+ individuals void.
November 18
A federal judge pressed DOJ lawyers to define “illegal” DEI programs; Peco Foods prevails in ERISA challenge over 401(k) forfeitures; D.C. court restores collective bargaining rights for Voice of America workers; Rep. Jared Golden secures House vote on restoring federal workers' union rights.
November 17
Justices receive petition to resolve FLSA circuit split, vaccine religious discrimination plaintiffs lose ground, and NJ sues Amazon over misclassification.
November 16
Boeing workers in St. Louis end a 102-day strike, unionized Starbucks baristas launch a new strike, and Illinois seeks to expand protections for immigrant workers