Rep. Takano: DOL Must Withdraw Proposed Tip Rule

Washington, D.C. – Today, Rep. Mark Takano (D-Calif.), ranking member of the Committee on Workforce Protections, called on the Department of Labor (DOL) to withdraw its proposed tip pooling rule, which would allow employers to pocket or redistribute the tips earned by workers. This morning, a Bloomberg BNA report revealed that senior DOL officials hid an internal economic analysis that found the rule would cost workers billions of dollars in tips.

“The Department of Labor’s decision to hide an internal analysis of its proposed tip rule raises serious concerns about the impact of the rule on workers and the integrity of the rulemaking process. Policy differences aside, everyone can agree that holding a public comment period without giving the public access to all the information necessary to evaluate the proposed rule is completely unacceptable.

“This revelation is particularly frustrating because it comes after numerous requests for department officials to release a quantitative analysis of its proposed rule. It now turns out that the department had completed that analysis, but it did not like the findings.

“In light of this information, the only appropriate course of action is to withdraw the proposed rule. The Department of Labor, as well as the Office of Management and Budget, have serious questions to answer about the transparency of their rulemaking process. I look forward to getting answers to those questions in the coming days.”

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