NELP Welcomes Federal Legislation Ensuring Workers Own Their Tips

Following is a statement from Christine Owens, Executive Director, National Employment Law Project, on the introduction of the TIP Act by Representatives Rosa DeLauro (CT) and Katherine Clark (MA):

“This bill will guarantee that workers get to keep the tips that they earn. Although this has long been the U.S. Department of Labor’s interpretation of the requirements of the Fair Labor Standards Act, the Trump DOL has aligned itself with the National Restaurant Association and proposed a regulation that would allow employers to exercise complete control over tips as long as they pay the measly federal minimum wage of $7.25 per hour.

“As even Labor Secretary Acosta admits, the proposal could result in employers keeping their workers’ tips. Although NELP believes this practice is already clearly prohibited by law, we nonetheless support the TIP Act, which removes any shadow of doubt about who owns the tips and makes clear that workers have the sole right to decide whether and how to pool their tips with other workers in their establishment.

“NELP is gratified that Labor Secretary Acosta and Representative Tom Cole (OK) voiced their support for a bill to ensure that workers have full ownership over their tips. We thank Representatives DeLauro and Clark for introducing this legislation, and we look forward to bipartisan cooperation to pass this important bill as quickly as possible.”


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