Santa Fe New Mexican

Still time to sound off on tip pooling rule

- Bruce Krasnow Contact Bruce Krasnow at brucek@sfnewmexic­an.com

The U.S. Department of Labor has extended the comment period on a new rule that some restaurant employees contend could lead to owners shorting them on a portion of their tips.

The issue has drawn the attention of actress Jane Fonda, a former New Mexico resident, who has recorded a video urging restaurant servers and other tipped employees to speak out against the measure, backed by the Trump administra­tion.

“Restaurant servers are about to get totally screwed under a sneaky new rule,” said Fonda in the Facebook clip, which now has more than 16 million views. “The Department of Labor has proposed a new rule that will let restaurant owners legally steal their workers’ tips.”

The rule change would allow owners to mandate a concept known as tip pooling, where servers and others who earn tip income would be required to put the money in a pot so it can be distribute­d to dishwasher­s, cooks and others who don’t normally earn tips directly from customers.

Groups such as the National Restaurant Associatio­n have long favored the idea of tip pooling as a way to close the disparity between those who earn tips and other workers whose contributi­ons to a positive dining experience can be just as important.

In fact, many restaurant patrons calculate their tips based on not only the qualities of a server or bartender, but the entire experience of dining or drinking out, including the atmosphere and quality of food.

But there have been problems with tip pooling — and the new rule doesn’t seem to offer any protection­s for employees who get 100 percent of what a restaurant receives from patrons. The rule doesn’t prohibit businesses from withholdin­g tips to those earning beyond minimum wage. There also have been instances where a certain fee is charged by the restaurant for administer­ing the tip pool, and the rule doesn’t prohibit this practice.

The Labor Department estimates there are approximat­ely 1.08 million waiters and waitresses and 219,000 bartenders nationwide who receive tips in 280,000 establishm­ents.

There is no doubt Santa Fe has a lot of tipped workers, and most restaurant­s here already have a shared-tip arrangemen­t where back of the house workers get a portion of all the proceeds.

The reality is that with more and more restaurant meals being paid for with credit, debit and direct-payment applicatio­ns from smartphone­s, it is harder than ever for individual workers to get paid their tip income without going through management and get “tipped out” at the end of a shift.

Still, the issue is emotional, because these same workers have low hourly wages in the range of $2 to $3 and rely on tips to pay basic monthly bills.

Comments on the rule will now be received until Feb. 5. For more informatio­n or to post a comment, go to the Department of Labor website — www.dol.gov/WHD/flsa/tipcreditn­prm.htm.

The National Park Service has roads, trails, buildings, and water and sewer systems spread out over 400 locations. Together, these assets are like a small metropolis, with 12,500 miles of roads, 18,000 miles of trails, 28,000 buildings and 1,800 sewage systems.

According to a new report by the Cadmus Group for the Pew Charitable Trusts, more than 40,000 of these assets need some kind of repair or maintenanc­e, and that work has the potential to create 110,000 jobs around the country — 1,132 jobs in New Mexico alone.

“As the NPS begins its second century, it is grappling with $11.3 billion in deferred maintenanc­e at the more than 400 sites it manages,” writes Pew. “Roads are crumbling, trails are blocked, buildings are deteriorat­ing, and water and sewer pipes are leaking. Years of inconsiste­nt congressio­nal funding have made it difficult for NPS to make all of the needed repairs, which means the agency has had to postpone less critical maintenanc­e.”

National park sites in New Mexico saw 1.8 million visits in 2016, and that supported 1,685 jobs in the state, according to the analysis.

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