The Department of Labor has published a proposed change to the rules around tip pooling. In 2011, the Obama Administration clarified the Fair Labor Standards Act regulations to reflect the Wage and Hour Division’s long-standing policy – based on 1974 FLSA amendments – that employers could never require staff to share tips, regardless of whether the employer paid a tipped or full minimum wage. The Trump Administration now proposes to repeal the Obama-era rule. While the restaurant industry welcomes repeal, which is consistent with the position they have taken in litigation over the 2011 rule, critics observe that it will leave wait staff with less take-home pay: employers are now free to require tipped workers, such as bartenders, to subsidize the pay of “back of the house” staff, such as bus boys, or to keep the tips for themselves, as long as they pay tipped workers at least $7.25 per hour. Saru Jayaraman of the Restaurant Opportunities Center United points out that tipped workers are majority women, and employer control over tips would exacerbate their vulnerability.
In the New York Times’ opinion pages, Sallie Krawcheck reacts to recent coverage of workplace sexual assault by connecting workplace sexual assault and gender bias to the overrepresentation of men in private sector leadership. Studies show that this homogeneity at the top hurts a company’s bottom line. The Associated Press shows a second way that business leaders are reacting to recent reporting on sexual harassment: many more companies plan to have alcohol-free holiday parties this year than last.
In May of this year, Uber cut prices in Nigeria by 40%. Drivers responded by protesting and by moving en masse to the Estonian ride sharing app Taxify, which takes less commission. Holdouts at Uber were reportedly told that they could qualify for an additional payment to compensate for the 40% cut, but only if they accepted 80% of requests and drove one trip per two hours. The LA Times reports on the aftermath of these changes—and their impact on drivers in the precarious position of renting the cars they drive for work.
Three years after Chicago passed an ordinance gradually raising the minimum wage to $13 per hour in 2019, the Chicago Tribune finds that enforcement has been limited. The city exempts from the ordinance workers like security guards, barbers, nail technicians, and locksmiths, who are regulated by Illinois. Pay outs are not big enough to incentivize much enforcement by private attorneys, and the city has not allocated significant resources to enforcement. The workers’ rights organization Arise Chicago is advocating for creation of a city office specifically dedicated labor standards. The city is working to improve language access.
Daily News & Commentary
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October 22
SCOTUS declines Wilcox appeal; Penn State research assistants win bargaining rights; SEIU sued over military leave firing.
October 21
DOL withdraws tipped-worker rule; Instacart settles hiring-bias claims; Phillips 66 locks out New Jersey refinery workers.
October 20
Korean unions oppose labor exemption bill; Portland city workers prepare for strike; UPenn grad student union looks to dismiss university filing
October 19
FDA reverses course on policy prohibiting off-duty union activity; FAA and NATCA reach deal to secure pay increase for air traffic controllers.
October 18
Federal judge again halts cancellation of the Bureau of Prisons’ CBA; tabletop gaming workers face roadblocks in union recognition.
October 16
Department of Labor reduces wage-and-hour enforcement at unionized workplaces; Fain's victory poses question of federal monitor's extension.