News & Commentary

February 1, 2018

This Bloomberg Law article explains that the Department of Labor, which recently introduced a tip pooling proposal, deleted an internal analysis showing that the new proposal could cost workers billions of dollars. Under the new plan, workers who earn tips could be forced to share them with management and “back-of-the-house” workers who do not earn tips. When the initial analysis showed workers losing billions, the Department of Labor revised some assumptions. However, the analysis again showed workers losing money. As such, the Department of Labor ultimately decided not to include this economic transfer data in the proposed rulemaking. The Department of Labor did not explain its decision to remove the data, which represents a departure from typical government policy. It is unclear whether the OMB and the White House approved removing this data. In the interim, the Economic Policy Institute has reported that this proposal could cost workers nearly $6 billion.

ADP and Moody’s Analytics predict that the U.S. economy will gain 234,000 jobs in January, which is nearly 100,000 more than was gained in December. They forecast that the service sector will add 212,000 jobs with the majority coming in the trade, transportation, and utilities, leisure and hospitality, and education sectors. Mark Zandi, Chief Economist of Moody’s Analytics, predicts the economy will add more than 2 million jobs in 2018.

Teachers’ unions in Florida are upset about a bill in the Florida House that will require them to maintain 50 percent membership among all eligible teachers at all times in order to avoid being decertified. Unions argue that in the summer when older teachers retire and new teachers are in orientation membership may temporarily dip below 50%. Supporters of the bill argue that minority leadership cannot be “a voice for the majority.”

Sears announced it will be cutting 220 jobs at its corporate office. The cuts will occur all across the country but will be focused at the corporate headquarters in Illinois. Cutting jobs in addition to closing stores and selling real estate are all part of Sears’ effort to regain profitability.

Enjoy OnLabor’s fresh takes on the day’s labor news, right in your inbox.