Close Menu
    Facebook X (Twitter) Instagram
    • Home
    • About Us
    • Digital Subscription
    • Advertisement
    • Contact Us
    X (Twitter) Instagram
    The Tennessee TribuneThe Tennessee Tribune
    Advertise With Us
    • Home
      • Featured
    • News
      • State
      • Local
      • National/International News
      • Global
      • Business
        • Commentary
        • Finance
        • Local Business
      • Investigative Stories
        • Affordable Housing
        • DCS Investigation
        • Gentrification
    • Editorial
      • National Politics
      • Local News
      • Local Editorial
      • Political Editorial
      • Editorial Cartoons
      • Cycle of Shame
    • Community
      • History
      • Tennessee
        • Chattanooga
        • Clarksville
        • Knoxville
        • Memphis
      • Public Notices
      • Women
        • Let’s Talk with Ms. June
    • Education
      • College
        • American Baptist College
        • Belmont University
        • Fisk
        • HBCU
        • Meharry
        • MTSU
        • University of Tennessee
        • TSU
        • Vanderbilt
      • Elementary
      • High School
    • Lifestyle
      • Art
      • Auto
      • Tribune Travel
      • Entertainment
        • 5 Questions With
        • Books
        • Events
        • Film Review
        • Local Entertainment
      • Family
      • Food
        • Drinks
      • Health & Wellness
      • Home & Garden
      • Featured Books
    • Religion
      • National Religion
      • Local Religion
      • Obituaries
        • National Obituaries
        • Local Obituaries
      • Faith Commentary
    • Sports
      • MLB
        • Sounds
      • NBA
      • NCAA
      • NFL
        • Predators
        • Titans
      • NHL
      • Other Sports
      • Golf
      • Professional Sports
      • Sports Commentary
      • Metro Sports
    • Media
      • Video
      • Photo Galleries
      • Take 10
      • Trending With The Tribune
    • Classified
    • Obituaries
      • Local Obituaries
      • National Obituaries
    The Tennessee TribuneThe Tennessee Tribune
    Nashville

    Labor Rule Change – Keeping a Tip Soon May Be Illegal

    Clare BrattenBy Clare BrattenFebruary 8, 2018Updated:February 15, 2018No Comments4 Mins Read
    Facebook Twitter LinkedIn Telegram Pinterest Tumblr Reddit Email
    l-r; Trish Noe, Vonda McDaniel and Dylan Lancaster say new tip rules constitute wage theft.
    Share
    Facebook Twitter LinkedIn Pinterest Email
    Advertisement

    By Clare Bratten

    NASHVILLE, TN — Restaurant workers worried about a threat to their tip income delivered hundreds of petition signatures Friday to the Department of Labor offices here. The petition opposes a proposed rule change allowing employers to use tip income for business expenses.

    “The Department of Labor withheld an economic impact analysis from the public because it shows an estimated $5.8 billion in wages that would be transferred to employers’ pockets should this rule go through,” said Trish Noe citing a Bloomberg Law report on the rule change (#RIN 1235-AA21). Noe is a service industry spokesperson.

    The rule change will force workers in restaurants, valet parkers, hair salon workers, and hotel workers to turn over all tips to the owners of the business where they work. Owners are then free to distribute the tips among other untipped workers like prep staff and cooks in the kitchen.

    But those owners also are free to use the tip money to pay for “capital improvements” in their businesses, or things like reducing menu prices — as long as their workers make federal minimum wage which is $7.25 an hour in Tennessee. This makes it possible for owners of businesses to use tip income for business expenses or to lower prices to consumers rather than to supplement historically very low hourly salaries of their employees.

    Vonda McDaniel president of Central Labor Council which represents 21,000 working families in Middle Tennessee stated:

    “This is reverse Robin Hood. Most of the workers that this ruling will cover are not union workers. This is the owners of restaurants taking away from workers . . . tipped workers have higher rates of poverty already, discrimination and sexual harassment. Undocumented workers in the restaurant industry are particularly vulnerable because they are less likely to report wage theft.”

    McDaniel characterized it as a continuation of Trump era taxes benefiting the wealthy.

    “It is a reversal of money in this country – we saw tax cuts before Christmas and now here we are again in taking from the folks who need it the most,” McDaniel said.

    ”If employers have trouble retaining non tipped workers because they are paid so bad[ly] then the solution is for the company to raise their wages. Not to essentially steal what tipped workers take home at the end of their shift. Tipped restaurant workers already have the lowest federal minimum wage of just $2.13 an hour. Which generally isn’t even enough to cover our tax liability,” said Noe.

    Noe pointed out that the proposed change in Labor rules was introduced with only days for public comment.

    “Under the Obama administration the Labor Department regulations stipulated that tips always belong to the employees regardless of whether they are paid the tipped wage or the federal minimum wage of $7.25,” said Noe.

    Dylan Lancaster who is a musician and restaurant worker predicts it will negatively affect tourism and the music industry.

    “The guise the rule is trying to portray that the tips will be equally distributed but nothing in the rule says that the employers have to do that.  I also play music. If this rule goes through I will have to stop doing what I’d like which is a huge part of the industry here in Nashville. I think it would very negatively affect tourism and the industry here in Nashville,” said Lancaster.

    “We represent the people who serve your food, who park your cars, who cut and color your hair, who carry your bags for you and who make your extra dirty martini shaken not stirred. We want the Trump administration, the National Restaurant Association to hear our collective voice,” said Noe.

    Share. Facebook Twitter Pinterest LinkedIn Tumblr Email
    Clare Bratten

    Related Posts

    WeGo Announces Free Bus Rides for Nov. 3 Election

    October 30, 2026

    Tribune Honored with Historical Marker

    October 29, 2026

    General Jackson Showboat to End Operations in December

    October 23, 2026

    Nashville Voter Turnout 15 Times Higher Than Last Midterm So Far

    October 22, 2026

    Tennessee Black Caucus Brings Statewide Listening Tour to Nashville

    October 20, 2026

    Victor Chatman celebrates 15 years of Jazz on the Cumberland Concert Series

    October 18, 2026
    Leave A Reply Cancel Reply

    Business

    Longtime Ascend Federal Credit Union Board Member Anthony Taylor Inducted into Tennessee Credit Union Hall of Fame

    October 7, 2026

    Nashville Attorney Receives Honor

    October 1, 2026

    Convention Center Authority Announces New, Reappointed Board Members

    September 19, 2026
    1 2 3 … 409 Next
    Education
    Education

    MTSU Center for Historic Preservation Names Dr. Tiffany Momon Director of the Center for Historic Preservation.

    By adminOctober 30, 2026

    MURFREESBORO, Tenn. — Middle Tennessee State University alumna Tiffany Momon is returning to a role…

    Battle Named 2026 Urban Educator of the Year

    October 29, 2026

    Brothers Honor Parents’ Legacy with $5,000 gift to TSU’s College of Agriculture

    October 28, 2026

    Meharry Medical College Holds 151st Convocation

    October 18, 2026
    The Tennessee Tribune
    X (Twitter) Instagram
    • About Us
    • Digital Subscription
    • Store
    • Advertise With Us
    • Contact
    © 2026 The Tennessee Tribune - Site Designed by No Regret Media.

    Type above and press Enter to search. Press Esc to cancel.