The National Restaurant Association’s efforts paid off as Congress ultimately voted to change the ACA’s definition of full-time work from 30 hours to 40 hours. The change allowed companies with 50 or more employees to withhold health insurance for employees working under 40 hours, without facing any penalty. The Trump administration has dealt the ACA blow after blow since taking control, most recently ditching subsidies for health insurance companies that help pay out-of-pocket costs for low-income individuals. The move was lauded by the National Restaurant Association.
More Power for Owners
Trump’s tip-pooling move would give more power to businesses in an industry where wage theft is already rampant. The Economic Policy Institute (EPI) recently released a report that assessed minimum wage violations in the 10 most populous US states. The EPI found that 2.4 million workers are reportedly paid less than the minimum wage in their state. This amounts to about $8 billion in stolen wages every year and, if these states’ numbers are in line with the rest of the country, the national number is probably around $15 billion. According to some studies, one in five workers is already having their tips stolen. This reality is set to get worse with Trump’s Labor Department making decisions and a powerful industry group guiding policy.