The legislation would provide protections for tipped workers, clarifying that tips are the property of employees and may not be confiscated by the employer
PHILADELPHIA – Councilwoman Cherelle L. Parker (9th District) today introduced a resolution urging the U.S. Congress to support the Tip Income Protection Act, which would provide protection for tipped workers, clarifying that tips are the property of employees and may not be confiscated by the employer.
In late 2017, U.S. Labor Secretary Alexander Acosta announced a proposed rule that would allow restaurant owners to pocket the tips of millions of tipped workers. The new rule would allow restaurant owners to transfer servers’ gratuities to cooks and dishwashers in places where servers make at least the minimum wage, but it would also allow restaurant owners to transfer those tips to themselves.
According to the Economic Policy Institute (EPI) Policy Center, the proposed rule would result in $5.8 billion in lost wages for tipped workers every year, as tips are shifted from workers to employers. Furthermore, 80 percent of that ―$4.6 billion― would be taken from women who work in tipped jobs. Recently, U.S. Representatives Rosa DeLauro (D-CT) and Katherine Clark (D-MA) introduced the Tip Income Protection (TIP) Act in response to proposed measure.
“The thought of allowing a restaurant owner to pocket the tips of their servers, who are often making minimum wage and do not have access to employer-provided health care or retirement security, is absurd,” Parker said. “This rule would seriously harm tipped workers and their families, and further illustrates the current Administration’s indifference towards the working class.”
“While Secretary Acosta has recently appeared to reverse course and agreed to work with both sides of the aisle to support the TIP Act, I am urging Congress to take swift action to ensure that millions of tipped workers’ livelihoods are never again subject to the whims of the Department of Labor.”
Councilwoman Cherelle L. Parker represents the 9th District, which includes East Mt. Airy, West Oak Lane, East Oak Lane, Lawncrest, Burholme, Olney and parts of Oxford Circle and Logan. She is Chair of Council’s Committee on Labor and Civil Service and Vice Chair of Council’s Committee on Commerce and Economic Development.