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DeLauro Applauds Biden Administration Decision to Roll Back Misguided Tip Regulations

September 24, 2021
Press Release

WASHINGTON, DC– House Appropriations Committee and Subcommittee on Labor, Health and Human Services, and Education Chair Rosa DeLauro (D-CT-03) issued this statement applauding the United States Secretary of Labor Marty Walsh for restoring the United States Department of Labor’s (DOL) ability protect employees and ensure workers maintain ownership of their tips.

“Tipped workers—not their bosses—are entitled to their hard-earned dollars. Too many people are working in jobs that do not pay them enough to live on. Given that reality, we must prevent employers from illegally pocketing workers’ tips.

“The previous administration implemented policies that consistently prioritized businesses and employers over workers. The rule implemented by the Trump administration that allowed employers to keep employees’ tips was misguided and contrary to regulations under the Fair Labor Standards Act (FLSA). In December 2019, I joined Senator Murray in urging DOL to abandon this harmful regulation, and I am proud Secretary Walsh and the Biden Administration have answered our call.”

In the 2018 Consolidated Appropriations Act, DeLauro and Senator Murray (D-WA) secured amendments to the FLSA that prohibit employers from pocketing workers’ tips, including taking tips to pay managers and supervisors. In addition, the amendments grant workers the right to sue to get back their stolen tips regardless of whether they were paid the full minimum wage or not.