Should our elected officials be able to pass laws that allow special interests to steal other people's private property?
I am not talking about taxing people for legitimate public concerns. What I am talking about is passing laws that allow special interests, such as business owners, to steal the tips customers present their workers.
The reason I ask is, we currently have a law called the federal tip credit that allows businesses to indirectly steal the customer's tip. Rather than allowing the business to directly steal the customer's tip, the tip credit is tied into our federal labor laws and allows businesses to indirectly steal the tips customers present.
The way it works is, rather that directly stealing the customer's tip, employers are allowed to lower the hourly wages of any employee who receive tips. Federal laws state that an employer can utilize up to $5.12 an hour of the tips an employee receives to reduce that employee's hourly wages from minimum wage, $7.25 an hour, down to $2.13 an hour.
If an employee receive $10 an hour in tips, his employer can reduce his hourly wages by up to $5.12 hour, thus using the customer's tip to bring the employee's hourly wages up to the required minimum wage amount of $7.25 an hour.
The thing is, if customers suddenly stop tipping this employee, the employer would have to pay the employee $7.25 an hour, instead of $2.13 an hour. What this means is that an employer who takes a tip credit on his employee and reduces his hourly wages is actually taking a portion of the customer's tip to pay his employee the required minimum wage of $7.25 an hour.
If an employee only receive $4.00 an hour in tips, the federal tip credit only allows an employer to reduce the employee's hourly wages by $4.00 an hour, however, think about this. If an employee is earning $7.25 an hour an customers start tipping him $4.00, who is going to financially benefit from the customer's tip if the employer lowers the employees hourly wages by $4.00 an hour. In this particular scenario, the employee who was earning $7.25 an hour, before customers started tipping him is going to earn $7.25 if customers start tipping him and his employer lowers his hourly wages by $4.00 an hour.
While many of you are probably unaware of the federal tip credit, many workers in the service industry are well aware of the law but have no forum to speak out against the law. The media is reluctant to run any articles which attempt to expose this corrupt legislation. The restaurant industry is one of the biggest lobbyists in this country and they have kept a tight lid on their little secret.
Without consent from the customer, I call such acts stealing.

