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Labor Department scuttles data showing pooling tips is good for bosses, bad for workers

Labor Department scuttles data showing pooling tips is good for bosses, bad for workers
[Photo: IcemanJ/iStock]

As per usual for the Trump administration, the Department of Labor (DOL) really wanted to roll back an Obama-era rule that prohibited tip pooling, where tips are re-distributed from servers to back-of-the-house workers, including dishwashers, but also bosses and managers. Employment rights advocates (and the employees themselves) argue that the arrangement lets bosses skim from the hard-earned gratuities of its workers, but the DOL believes bosses are benevolent leaders who will redistribute the tips and not just use it to buy overpriced lattes and line their own pockets.

To prove their point, the DOL ordered an internal analysis of the issue. The only problem was that the results were unfavorable, proving that employees could lose out on billions of dollars in gratuities. So they reportedly scrubbed the report, according to Bloomberg Law. In response, senior department political officials reportedly ordered staff to revise the data methodology to lessen the expected impact, but still didn’t like the results. So they eventually decided to scrub the data entirely, and are probably plugging their ears and saying “nananananana.” Read Bloomberg Law’s comprehensive look at the issue.

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