Labor Department Proposes Legalizing Wage Theft

Kelly Ross AFL-CIO

Too many restaurant owners already break the law by stealing tips from their servers. Now the Department of Labor wants to give its blessing to this kind of wage theft.

The Labor Department is moving quickly to establish a new rule that would make tips the property of restaurant owners instead of workers.

This week, President Donald Trump's administration proposed getting rid of an existing rule that makes tips the property of servers that restaurant owners cannot take away.

Under the new proposal, restaurant owners who pay their employees as little as $7.25 per hour could do whatever they want with tips left by customers for waitstaff. Restaurant owners could even keep the tips for themselves.

The federal minimum cash wage for tipped workers—at just $2.13 per hour—is already lower than for other workers. This low subminimum wage means that tipped workers depend on tips for virtually all their take-home pay after taxes, so they receive their take-home pay directly from customers. Not surprisingly, tipped workers have higher rates of poverty, discrimination and sexual harassment. Undocumented and immigrant workers in the restaurant industry are particularly vulnerable to wage theft.

The administration’s proposal would take money out of the pockets of some of the lowest-paid workers in our country and hand it over to restaurant owners, many of them big corporations.

Does that sound familiar? This is the same kind of reverse Robin Hood scheme as the disgraceful tax bill now making its way through Congress.

We cannot let them get away with this. The administration is trying to sneak this change through without hearing from workers, customers or even employers who disagree at a time of year when tipped workers are the busiest. The deadline for comments on this proposal is Jan. 4, 2018.

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Reposted from the AFL-CIO

Posted In: Allied Approaches, From AFL-CIO

Union Matters

Get to Know AFL-CIO's Affiliates: National Association of Letter Carriers

From the AFL-CIO

Next up in our series that takes a deeper look at each of our affiliates is the National Association of Letter Carriers.

Name of Union: National Association of Letter Carriers (NALC)

Mission: To unite fraternally all city letter carriers employed by the U.S. Postal Service for their mutual benefit; to obtain and secure rights as employees of the USPS and to strive at all times to promote the safety and the welfare of every member; to strive for the constant improvement of the Postal Service; and for other purposes. NALC is a single-craft union and is the sole collective-bargaining agent for city letter carriers.

Current Leadership of Union: Fredric V. Rolando serves as president of NALC, after being sworn in as the union's 18th president in 2009. Rolando began his career as a letter carrier in 1978 in South Miami before moving to Sarasota in 1984. He was elected president of Branch 2148 in 1988 and served in that role until 1999. In the ensuing years, he worked in various roles for NALC before winning his election as a national officer in 2002, when he was elected director of city delivery. In 2006, he won election as executive vice president. Rolando was re-elected as NALC president in 2010, 2014 and 2018.

Brian Renfroe serves as executive vice president, Lew Drass as vice president, Nicole Rhine as secretary-treasurer, Paul Barner as assistant secretary-treasurer, Christopher Jackson as director of city delivery, Manuel L. Peralta Jr. as director of safety and health, Dan Toth as director of retired members, Stephanie Stewart as director of the Health Benefit Plan and James W. “Jim” Yates as director of life insurance.

Number of Members: 291,000 active and retired letter carriers.

Members Work As: City letter carriers.

Industries Represented: The United States Postal Service.

History: In 1794, the first letter carriers were appointed by Congress as the implementation of the new U.S. Constitution was being put into effect. By the time of the Civil War, free delivery of city mail was established and letter carriers successfully concluded a campaign for the eight-hour workday in 1888. The next year, letter carriers came together in Milwaukee and the National Association of Letter Carriers was formed.

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There is Dignity in All Work

There is Dignity in All Work