Tag: Tsar

Labor Secretary Alex Acosta convinced Office of Management and Budget (OMB) Director Mick Mulvaney to overrule the nation’s regulatory czar and release a controversial tip pooling rule despite data showing workers could lose billions in gratuities, according to a new report. Bloomberg Law, citing three current and former executive branch officials, reported that Mulvaney sided with Acosta over the Office of Information and Regulatory Affairs (OIRA), which is led by Administrator Neomi Rao. The rule would change the Fair Labor Standards Act to allow employers to pool the tips of workers who make at least the federal minimum wage, which is $7.25 an hour. Employees who make less than the federal minimum wage and earn tips to supplement their pay were not part of the proposal. But progressive groups like the Economic Policy Institute (EPI) and the National Employment Law Project say the rule lacks a safeguard to stop an employer from stealing a percentage of the workers' tips. In a statement to The Hill, a Department of Labor (DOL) spokesperson said the department does not comment on deliberative processes. "We will make an exception now, as the premise of this reporting is false: there is zero daylight between Director Mulvaney and Administrator Rao on regulatory policy," he said. "Acosta should withdraw DOL’s proposal that would make it legal for employers to take workers’ tips," she said in a statement. "He should focus on things that promote DOL’s mission of serving working people, not undermining their earnings." --This report was updated at 1:06 p.m.