03.21.18

Top Democrats Call on DOL to Pull the Harmful Tip Rule

“We will be requesting a hearing to examine the Department's conduct and the Labor Secretary's role in this controversy”

WASHINGTON – Congressman Bobby Scott (VA-03), ranking member of the Education and the Workforce Committee, Congressman Mark Pocan (WI-02), Co-Chair of the Congressional Progressive Caucus, Congressman Keith Ellison (MN-05), Labor Liaison 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, issued the following statement after a report from Bloomberg Law this morning that the Labor Department leadership convinced OMB Director Mick Mulvaney to overrule the White House regulatory affairs chief and release the tip rule without data showing it could allow businesses to skim $640 million in gratuities.  

“This latest report from Bloomberg Law that Labor Secretary Acosta urged OMB Director Mick Mulvaney to exclude a legally required analysis only intensifies existing concerns about the integrity of the rulemaking process for its proposed rule to allow employers to keep and control how to redistribute workers’ tips. More than a month ago, House members demanded that the agency turn over communications related to its decision to exclude an economic analysis in its proposed rule. However, all we received was a boilerplate  response that failed to even acknowledge the existence of the economic analyses.

“This new report on the apparent decision to hide the adverse impact to workers further erodes the public’s trust in the Labor Department’s commitment to protecting workers. We will be requesting a hearing to examine the Department's conduct and the Labor Secretary's role in this controversy.  

“Once again, we urge the Labor Department to withdraw this flawed rule.”

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