The Trump administration is trying once again to tweak the rules that govern how tipped workers are paid. This time, their proposal would probably result in servers doing more nontipped work and at a lower pay rate than previously required
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The Labor Department, now headed by recent Trump appointee Secretary Eugene Scalia, wants to get rid of that explicit 20% time limit. Instead, the rule would simply require that the nontipped work be done “contemporaneously” or “within a reasonable time immediately before or after” the tipped work. So long as an employer met that vague criteria, there would be no precise cap on the nontipped work if the administration’s proposal becomes final.
Story continuesThe Labor Department says dropping the rule would “eliminate this monitoring cost” and save employers money. Under Trump, the agency stopped enforcing the rule last year, but the new proposal would go a step further by doing away with it. Consequently, employment of workers currently performing these duties, such as dishwashers and cooks, may fall, possibly resulting in a transfer of employment-related producer surplus from those non-tipped workers to tipped workers who work longer hours.
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