Scott To Demand Info About Negative Tip Pool Analysis

Rep. Bobby Scott (D-Va.) said today he will demand information from Labor Secretary Alexander Acosta about whether his agency suppressed an economic analysis of a proposed rule change to pool workers' gratuities.

The letter comes after Bloomberg reported the department shelved a report showing the rule change could transfer billions in tips from employees to business owners.

The ranking Democrat on the House Education and the Workforce Committee said he wants all DOL-conducted analyses on the rule change and will ask whether employees were directed to modify their methodology to show a less severe impact — an allegation made in the report. Acosta failed to respond to a similar Jan. 9 letter from Sen. Patty Murray (D-Wash.), according to the senator’s office.

Scott will also ask if any outside parties were consulted on the analysis. A congressional Democratic staffer expressed concern the National Restaurant Association may have been consulted on the rule change given its narrow scope.

Democratic lawmakers were outraged by the revelations. Murray called the efforts a “botched cover-up,” while Rep. Mark Takano (D-Calif.) insisted the department withdraw the proposal.

"Policy differences aside, everyone can agree that holding a public comment period without giving the public access to all the information necessary to evaluate the proposed rule is completely unacceptable,” said Takano, the top Democrat on the subcommittee for workforce protections.

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