Reduced Federal Minimum Wage to be Approved
The Department of Labor (DL) is proposing to change the Fair Labor Standards Act (FLSA) of 1938 to roll back wage requirements for service workers, specifically those earning tips & an hourly wage. Current rules for such employers require employees be paid the federal minimum wage ($7.25). However, the proposal will allow employers to consider employee tips as part of that federal minimum wage thus reducing any businesses obligation to pay its service workers.
In the last decade many businesses have required service workers to pool their tip earnings, this practice will be expanded across industries as the pooling will subsidize a business’s obligation to pay its employees, this change will directly lead to more profits by reducing wage overhead expenses for businesses to the detriment of employees and the customers they serve.
As the third shift a of a 24hour restaurant came in for their shift, patrons of the restaurant were stunned to see the employees marched in the restaurant in handcuffs and chains. When an outraged customer asked the shift manager what’s going on the manager replied this is our slave labor force, we have to treat them like this so they remember their place, we’re making America great again, we’re not there yet but we’re on our way to getting there said the manager.
More can be found at https://www.regulations.gov/document?D=WHD-2017-0003-0001