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Trump Administration moving to allow Restaurants to keep workers tips

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posted on Dec, 14 2017 @ 02:44 PM
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originally posted by: Krazysh0t
a reply to: bigfatfurrytexan

Yes. So I you see my point then? It's easy to trust the boss when you don't know, and if you have a boss with a low moral threshold then there is nothing stopping him from abusing that trust.


Here's the thing: people who work for shops where the owner is so unethical he will steal from you, are there because they lack a choice.

Take Motel 6 housekeepers....they are often paid by the room. People with options don't accept a job where you make $3/room (it comes out to about minimum wage if you hustle).

"Slave labor" isn't hard to find. Its just hard to manage. But finding people who have painted themselves into a corner that will take your abuse is actually pretty easy. In many industries, all you have to do is not have a pre-employment drug test to capture a workforce that is limited on options.




posted on Dec, 14 2017 @ 02:48 PM
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a reply to: bigfatfurrytexan

Shouldn't those people have protections too?



posted on Dec, 14 2017 @ 02:48 PM
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a reply to: Zarniwoop

My issue is that Uncle Sam feels entitled to tips.

Tips being viewed as "income" is where it all started. That being said, if you remove tips and have the full burden of labor cost put on the restaurants, average checks will double (your $22 average plate will balloon to $35 or more to cover the additional labor) and restaurants will begin to close.

In Texas, prior to the advent of the "Mixed Beverage Tax" (when they began allowing restaurants to serve customers), restaurants struggled. I've run operations where mixed beverage sales were extremely low, and its hard to stay in business. You will run profit margins of under 8% on the food operations. Its the beverage sales that make up the difference.



posted on Dec, 14 2017 @ 02:49 PM
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originally posted by: Krazysh0t
a reply to: bigfatfurrytexan

Shouldn't those people have protections too?


Yes.

I won't do business with a hotellier that uses "by the room" pay scales for housekeepers. I have integrity.



posted on Dec, 14 2017 @ 02:52 PM
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originally posted by: Zarniwoop
a reply to: Krazysh0t

I have to admit, I've seen a lot of shady stuff in restaurant ops (not owners, necessarily). I'm not that sure this proposal will do that much to open up that many new doors for corruption. The unethical ones will steal with or without regulation.

Heck. One of my neighbors kids worked for a place where the owner kept all the tips.... you don't like it, you don't work here.
That would be illegal.
There have been many lawsuits filed against restaurant chains and owners about tip pooling abuses and tip theft. The courts seem to rule in favor of the employees on the ones I have read about. This proposal claims to stop the need for such lawsuits. I don't see how this will necessarily close the door for corruption but it could make it harder to sue.



posted on Dec, 14 2017 @ 02:58 PM
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a reply to: Devino


That would be illegal.


Yeah. The kid knew that too. It's a reality, though.



posted on Dec, 15 2017 @ 12:31 AM
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a reply to: Wayfarer

from the document




A. Why the Department is Considering Action As explained in greater detail earlier in the analysis,
the Department has serious concerns that it incorrectly construed the statute in promulgating its current tip regulations to apply to employers that have paid a direct cash wage of at least the full Federal minimum wage to their tipped employees and serious concerns about those regulations as a policy matter. The Department is therefore proposing to rescind those portions of its tip regulations at 29 CFR part 56 531, Subpart D that impose restrictions on employers that pay a direct cash wage of at least the full Federal minimum wage and do not claim a tip credit against their minimum wage obligations.

B. Statement of Objectives and Legal Basis for the Proposed Rule
The Department’s regulations addressing the treatment of tipped employees under federal law at 29 CFR part 531, Subpart D are derived from section 3(m) of the FLSA. See 29 U.S.C. 203(m). As explained earlier, the Department now has serious concerns that it incorrectly construed the statute in promulgating its current tip regulations to apply to employers that do not take a tip credit, i.e., where an employee receives at least the full $7.25 Federal minimum wage directly from the employer, and serious concerns about the regulations as a policy matter, especially in light of changed circumstances. The purpose of Section 3(m)’s tip credit provision is to allow an employer to subsidize a portion of its Federal minimum wage obligation through a credit against the tips given to employees by customers. If an employer pays its tipped employees a direct cash wage of at least the full Federal minimum wage (currently $7.25 per hour) but reallocates equal or greater amount of the tips received by its employees, there is a question as to whether the employer is circumventing the protections of Section 3(m) because it is utilizing tips received by its employees towards its minimum wage obligations to a greater extent than permitted under the statute. Where, however, an employer has paid employees a direct cash wage of at least the full Federal minimum wage and does not reallocate the employee tips directly, but requires that employee tips be distributed to non-tipped employees through a tip pool, there is a strong argument that the statutory protections of Section 3(m) are not circumvented.



posted on Dec, 15 2017 @ 12:56 AM
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originally posted by: underwerks

originally posted by: Wayfarer
Original article from EPI

I'd love to hear Trump Supporters take on how this is good, why they support it, and why waiters/waitresses and food service professionals deserve to make even less.


Well, when business owners start to make more money they magically become altruistic and provide more jobs and raises to their workers instead of just further enriching themselves.

At least that's what the trickle me down people would have you believe.


So if you were a successful business owner yourself, you'll be giving all those excess profits away?



posted on Dec, 15 2017 @ 09:50 AM
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Donald Trump, showing love for the working class.



posted on Dec, 17 2017 @ 09:51 PM
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Needed a job, the only thing I knew before hand was bad pay. The rest just revealed itself later.

a reply to: olaru12



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