Top Democrats Ask DOL for Public Hearing on Proposed Tip Rule
“[P]ublic interest in the impact of the rule demands public hearings from the Department.”
WASHINGTON – Congressman Bobby Scott (VA-03), ranking member of the Education and the Workforce Committee, Congressman Keith Ellison (MN-05), vice chair of the Congressional Progressive Caucus, Congressman Mark Takano (CA-41), ranking member of the Subcommittee on Workforce Protections, and Congresswoman Suzanne Bonamici (OR-01), vice ranking member of the Committee on Education and the Workforce, sent a letter to Department of Labor (DOL) Secretary Alexander Acosta requesting the DOL hold public hearings on its proposed rule to allow employers to pocket tips of workers who are paid at least the minimum wage.
“[P]ublic interest in the impact of the rule demands public hearings from the Department. At the time of the writing of this letter, nearly 115,000 public comments have been submitted, many from workers,” the Members wrote. “We urge the Department to hold public hearings, both at its Washington, D.C. headquarters and throughout the country, to respond to this strong public awareness and interest in providing input on the proposed rule’s impact.”
In addition to providing workers with an opportunity to speak first hand of the impact of the proposed rule, a public hearing would provide an opportunity for the DOL to hear from economists on the rule’s costs to workers. The Members also expressed concern that the DOL has failed to calculate the amount of tips that would be transferred from workers to employers under the proposed rule. This quantitative analysis is legally required to demonstrate to that the rule’s benefits justify its costs. According to an analysis by the Economic Policy Institute, the rule could have the effect of allowing employers to pocket $5.8 billion of their employees' tips each year.
This comes on the heels of members urging the DOL to extend its initial 30-day comment period for this proposed rule, which they agreed too.
The text of the letter is enclosed below:
Dear Secretary Acosta:
We write to respectfully request that the Department of Labor’s Wage and Hour Division hold public hearings on its Notice of Proposed Rulemaking, Tip Regulations under the Fair Labor Standards Act (FLSA). The Department’s proposed rule rescinds parts of its current regulations that clarify tips are the property of employees, regardless of whether the employer takes a tip credit or pays the employee the full federal minimum wage.
We appreciate the Department’s decision to grant our request to extend the public comment period by 30 days, from January 4, 2018 to February 5, 2018. We believe this extension will be helpful in providing workers with an opportunity to share with the Department how the proposal will impact them.
We believe, however, public interest in the impact of the rule demands public hearings from the Department. At the time of the writing of this letter, more than 120,000 public comments have been submitted, many from workers. We urge the Department to hold public hearings, both at its Washington, D.C. headquarters and throughout the country, to respond to this strong public awareness and interest in providing input on the proposed rule’s impact.
Additionally, as we have stated before, the proposed rule lacks a quantitative analysis, as required under Section 1(c) of Executive Order 13563, that demonstrates its benefits justify its costs. A public hearing also provides an additional opportunity for the Department to hear from economists on the costs of the proposed rule, including the loss of income from the transfer of tips from workers to employers.
Sincerely,
Bobby Scott (VA-03), Committee on Education and the Workforce, Ranking Member
Keith Ellison (MN-05), Congressional Progressive Caucus, Vice Chair
Mark Takano (CA-41), Subcommittee on Workforce Protections, Ranking Member
Suzanne Bonamici (OR-01), Committee on Education and the Workforce, Vice Ranking Member
Press Contact
Stephanie Lalle, 202-226-0853 (Scott)
Hamid Bendaas, 202- 450-0491 (Ellison)
Josh Weisz, 202- 225-2305 (Takano)
Maggie Rousseau, 202-225-0855 (Bonamici)
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