Outten & Golden: Empowering Employees in the Workplace

Posts Tagged ‘Elizabeth Warren’

Trump Administration Should Rescind Proposal That Allows Bosses to Pocket Working People's Tips

Thursday, February 15th, 2018

As we previously reported, President Donald Trump’s Labor Secretary Alexander Acosta announced a new proposed regulation to allow restaurant owners to pocket the tips of millions of tipped workers. This would result in an estimated $5.8 billion in lost wages for workers each year?wages that they rightfully earned.

And most of that would come from women’s pockets. Nearly 70% of tipped workers are women, and a majority of them work in the restaurant industry, which suffers from some of the highest rates of sexual harassment in the entire labor market. This rule would exacerbate sexual harassment because workers will now depend on the whims of owners to get their tips back.

In a letter to Congress, the AFL-CIO opposed the rule change in the strongest possible terms, calling for the proposal to be rescinded:

Just days before the comment period for this [Notice of Proposed Rulemaking] closed, an extremely disturbing report appeared indicating that analysis of the costs and benefits in fact occurred, but was discarded. On Feb. 1, 2018, Bloomberg/BNA reported that the Department of Labor “scrubbed an unfavorable internal analysis from a new tip pooling proposal, shielding the public from estimates that potentially billions of dollars in gratuities could be transferred from workers to their employer.” Assuming these reports are correct, the Department of Labor should immediately make the underlying data (and the analyses that the Department conducted) available to the public. We call on the Department of Labor to do so immediately and to withdraw the related Notice of Proposed Rulemaking.

The AFL-CIO strongly urges the Department to withdraw the proposed rule, and instead focus its energies on promoting policies that will improve economic security for people working in low-wage jobs and empower all working people with the resources they need to combat sexual harassment in their workplaces.

The Department of Labor must provide an estimate of its proposed rules’ economic impact. However, while suspiciously claiming that such an analysis was impossible, it turns out that this wasn’t true:

Senior department political officials—faced with a government analysis showing that workers could lose billions of dollars in tips as a result of the proposal—ordered staff to revise the data methodology to lessen the expected impact, several of the sources said. Although later calculations showed progressively reduced tip losses, Labor Secretary Alexander Acosta and his team are said to have still been uncomfortable with including the data in the proposal. The officials disagreed with assumptions in the analysis that employers would retain their employees’ gratuities, rather than redistribute the money to other hourly workers. They wound up receiving approval from the White House to publish a proposal Dec. 5 that removed the economic transfer data altogether, the sources said.

The move to drop the analysis means workers, businesses, advocacy groups and others who want to weigh in on the tip pool proposal will have to do so without seeing the government’s estimate first.

Democrats in Congress quickly responded that the rule change should be abandoned, as the new rule would authorize employers to engage in wage theft against their workers. Sen. Elizabeth Warren (D-Mass.) said:

You have been a proponent of more transparency and economic analysis in the rulemaking process. But if DOL hid a key economic analysis of this proposed rule—and if [Office of Management and Budget] officials were aware of and complicit in doing so—that would raise serious questions about the integrity of the rule itself, and about your role and the role of other OMB officials in the rulemaking.

Take action today and send a letter to Congress asking it to stop Trump’s tip theft rule.

This blog was originally published at AFL-CIO on February 15, 2018. Reprinted with permission. 

About the Author: Kenneth Quinnell is a long-time blogger, campaign staffer and political activist. Before joining the AFL-CIO in 2012, he worked as labor reporter for the blog Crooks and Liars.

Trump NLRB Appointee Behind Major Anti-Union Ruling Accused of Corruption

Thursday, January 25th, 2018

An anti-union policy decision from President Donald Trump’s National Labor Relations Board (NLRB) appointees appears to be tainted by a violation of ethics standards, and Sen. Elizabeth Warren (D-Mass.) is joining unions in demanding answers.

The Trump policy decision came on December 14 when the NLRB reversed an Obama-era ruling in the Browning-Ferris case—a pro-worker decision from 2015 that has been loudly decried by business lobbyists and conservative Republicans. The case turned on the issue of how the NLRB would define the term “joint employer” in union organizing cases—and was broadly viewed as a blow to McDonald’s and other fast food companies that exploit the franchise business model as a tool to help defeat unions. Last month, the five-member NLRB voted 3-2 in the Hy-Brand Industrial Contractors case to reverse Browning-Ferris, with recent Trump appointee William J. Emanuel providing the margin of victory for the anti-union forces.

Emanuel now stands accused by Warren and others of violating ethical standards by voting on the case even though he appears to have a conflict of interest. The conflict is said to arise from Emanuel’s former status as part owner (or “shareholder”) of the labor law firm Littler Mendelson, a business that specializes in representing employers against their own workers. The firm represented a party in Browning-Ferris, so standard government ethics rules indicate Emanuel should have recused himself from voting, according to critics.

“It looks really bad,” says Susan Garea, a California attorney representing Teamsters Local 350. Emanuel’s violation of ethics rules taints the NLRB vote, she tells In These Times, so the decision in Hy-Brand Industrial should be voided, and the validity of Browning-Ferris evaluated in an atmosphere free of conflicts of interest. Garea detailed her charges in a Jan. 4 court filing in the U.S. Court of Appeals for the District of Columbia Circuit. “It’s clear Emanuel should not participate,” in any vote on Browning-Ferris, she says

The Teamsters have been fighting the case for years. In 2013, Local 350 tried to organize workers at a recycling center in Milpitas, Calif., that was owned and operated by Browning-Ferris. But the union found itself blocked by a legal strategy that asserted the workers were actually employees of an outside staffing agency, Garea explains. The union fought the case before the NLRB, prevailed with the Board’s 2015 pro-union decision, and has been working ever since to fend off legal attempts to overturn the ruling. Garea, of the law firm Beeson, Tayer & Bodine, proclaims the case is far from over and the union is intent on blocking Emanuel’s improper action.

Warren entered the picture when Trump nominated Emanuel for the NLRB in mid 2017. She opposed him from the start, arguing that a lawyer who has represented only bosses in a 40-year-plus legal career was a bad choice for the NLRB, which is supposed to be a fair arbiter of labor disputes. She demanded a commitment from Emanuel to recuse himself from NLRB cases involving a long list of former clients (which he agreed to do) and voted against him in the final confirmation on the Senate floor.

“Emanuel is the opposite of what Senator Warren would like to see in an NLRB member. His conflicts of interest are a mile long, and he spent decades fighting against workers’ efforts to join together and stand up for themselves,” Warren’s Deputy Press Secretary Saloni Sharma tells In These Times.

The Senate floor vote on Emanuel reflected the deep party-line divide over Trump’s nominations to the NLRB. All the Democratic Party senators present voted against Emanuel, and all the Republicans voted for him. AFL-CIO chief lobbyist Bill Samuel tells In These Times that Trump’s appointments to government labor posts have been strongly anti-union, but Emanuel is one of the most extreme. “We didn’t make a fight about Emanuel. We just didn’t have the votes,” he says. “But we are very much behind Sen. Warren in her efforts to hold them [the NLRB members] accountable.”

In a letter dated Dec. 21, Warren posed questions to Emanuel raising concerns about potential misconduct in the Hy-Brand vote. “Given that your former partners at Littler Mendelson P.C. represented a party in [Browning-Ferris] before the board, did you recuse yourself from the board’s decision to move to remand the [Browning-Ferris] case from the U.S. Court of Appeals for the D.C. Circuit back to the board? If not, why not?” she writes. The letter, also signed by several other top Congressional Democrats, requests that Emanuel commit to additional recusals from pending NLRB cases in the future.

An unsigned email message stated that Emanuel “respectfully declines” a telephone interview to discuss the Warren allegations. Messages left directly with Emanuel were not returned.

Sen. Warren and other congressional Democrats are awaiting a formal response to the questions before deciding on the next step against Emanuel. Meanwhile, the White House is expected to announce it is nominating Washington, D.C., management-side attorney John Ring to fill an open seat on the five-member NLRB, as former Chairman Philip Miscimarra’s term on the Board expired just days after the Hy-Brand decision.

This article was originally published at In These Times on January 23, 2018. Reprinted with permission. 

About the Author: Bruce Vail is a Baltimore-based freelance writer with decades of experience covering labor and business stories for newspapers, magazines and new media. He was a reporter for Bloomberg BNA’s Daily Labor Report, covering collective bargaining issues in a wide range of industries, and a maritime industry reporter and editor for the Journal of Commerce, serving both in the newspaper’s New York City headquarters and in the Washington, D.C. bureau.

Working People Need a Strong CFPB with a Leader Who Supports Its Existence

Wednesday, November 29th, 2017

The Consumer Financial Protection Bureau was created after the Great Recession of 2008 wreaked havoc on the U.S. economy, causing millions of families to lose their homes to foreclosure and forcing millions of working people onto the unemployment rolls. Its mission is to protect working people from tricks and traps in consumer financial products like home mortgages and credit cards.

The CFPB has proven extremely effective. Since its creation in 2010, the bureau has returned $12 billion to consumers wronged by lenders. Twenty-nine million consumers have received relief.

The bureau owes much of its success to strong leadership. Sen. Elizabeth Warren (D-Mass.) originally had the idea to create the CFPB when she was a law professor at Harvard and led the bureau in its infancy. In 2012, she was succeeded by Richard Cordray, who had a strong record of pursuing wrongdoing against consumers as Ohio attorney general before his time at the CFPB.

Cordray, however, resigned last week, and President Donald Trump named Office of Management and Budget Director Mick Mulvaney to replace him.

There are a few problems with this. First, Mulvaney already has a job leading the Office of Management and Budget and has shown no intention of stepping down from the post. Mulvaney also has been highly critical of the CFPB, calling it a “joke…in a sick, sad way.” Finally, there are legal questions about who gets to lead the bureau when the director steps down—the deputy director or someone appointed by the president.

In addition, Mulvaney’s former chief of staff, Natalee Binkholder, left Mulvaney’s congressional staff to go to work as a lobbyist for Santander, a bank that has faced sanctions from the bureau and is reportedly facing a CFPB lawsuit alleging that it overcharged consumers for car loans.

We learned the hard way from the financial crisis in 2008 that working people need the CFPB. We need the bureau to fight to protect us from predatory lenders and, in order to be effective in doing that, it needs to be led by a strong, full-time director who believes in its mission. Consumer financial protection is a full-time job, not a side gig for someone who things it’s a “joke.”

This blog was originally published at AFL-CIO on November 28, 2017. Reprinted with permission. 

About the Author: Heather Slavkin Corzo is the director of the AFL-CIO Office of Investment. She joined the AFL-CIO in 2007 as a research analyst and was the senior legal and policy adviser from 2007 through 2014.

The Time Is Now to Stand Up for the CFPB

Tuesday, May 23rd, 2017

Mark Feuer, the Los Angeles City Attorney who helped hold Wells Fargo accountable for creating millions of fake accounts without customers’ knowledge, now warns against efforts by the Trump administration and Congress to dismantle the Consumer Financial Protection Bureau.

“I’m appalled at the spectacle of the House attempting to dismantle or at least severely diminish the CFPB,” Feuer told CNNMoney in a recent interview. He was referring to a bill disingenuously called the CHOICE Act, which would neuter the now-independent CFPB so that it no longer serves as a watchdog against the predatory practices of financial institutions.

People’s Action is asking for signatures on a petition calling on Congress to vote “no” on the CHOICE Act, which in expected to come up for a vote in the coming weeks.

Feuer explained in the interview that the CFPB played a crucial role in investigating reports that Wells Fargo employees were fabricating accounts under pressure to meet sales quotas. Those fake accounts, in turn, showed up in financial reports that helped Wells Fargo boost its stock price and, as the stock price rose, executive earnings.

“It’s true we brought the case in the first place” in response to a 2013 Los Angeles Times exposé, Feuer said, “but our collaboration with the CFPB enabled there to be nationwide relief for Wells customers.”

That included $5 million in refunds to consumers who were assessed fees on the fake accounts and changes in sales practices at the bank. The bank also had to pay $185 million in fines, and did away with the sales quotas that led to the creation of the fake accounts.

You would think that a House of Representatives that is answerable to consumers vulnerable to what Sen. Elizabeth Warren calls the “tricks and traps” big banks, predatory lenders, and debt collectors use to take billions of dollars out of their pockets would consider the CFPB to be a hero.

But that House of Representatives does not exist. The majority of the House is instead answerable to the very tricksters who want free rein to game the system and line their pockets. Republicans love the campaign donations they get from Wall Street bankers, payday lenders, and hedge fund managers. They are literally itching to destroy the CFPB and let Wall Street go wild.

After the big banks crashed the economy in 2008, people took action and won reforms to rein in Wall Street abuses. A big part of that was establishing the CFPB, and structuring it so that it isn’t a punching bag for a Congress and White House drunk on big-bank financial contributions.

The CFPB is the first federal financial watchdog whose entire job is making sure Wall Street can’t get away with the tricks and traps that bleed millions out of our pockets. The Bureau has recovered $12 billion dollars in ill-gotten gains for over 27 million people ripped off by the predatory financial industry.

It is no wonder that gutting the CFPB has been a top priority of the Republican Congress from the beginning. And with all of the scandal now consuming Washington, it would be very easy for Congress to get away with this – unless we “stay woke.”

That’s why we have to get loud about what Congress is doing here.
We’ve derailed Wall Street’s agenda before and, if we stand together, we can stop them again. But that means we need to stop the CHOICE Act dead in its tracks.

Tell Congress: You work for us, not Wall Street. We need our government to do more to rein in payday lenders and Wall Street bankers, not give them a free pass to crash the economy again. Say no to the CHOICE Act. Say yes to an independent CFPB.

This blog originally appeared at OurFuture.org on May 22, 2017. Reprinted with permission.

About the Author: Isaiah J. Poole has been the editor of OurFuture.org since 2007. Previously he worked for 25 years in mainstream media, most recently at Congressional Quarterly, where he covered congressional leadership and tracked major bills through Congress. Most of his journalism experience has been in Washington as both a reporter and an editor on topics ranging from presidential politics to pop culture. His work has put him at the front lines of ideological battles between progressives and conservatives. He also served as a founding member of the Washington Association of Black Journalists and the National Lesbian and Gay Journalists Association.

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