Labor News & Commentary August 12, 2024 Eighth Circuit issues a potentially impactful ruling on forced arbitration & mor

https://onlabor.org/august-11-2024-2/

By Holden Hopkins

Holden Hopkins is a student at Harvard Law School.

In today’s News & Commentary, Vice President Kamala Harris backs a proposal to end taxes on tips, Crooked Media Workers’ Union secures a contract, and the Eighth Circuit issues a potentially impactful ruling on forced arbitration.

Elyse reported last Monday on Donald Trump’s backing of a plan to end income taxes on tips, part of his broader attempt to court support from workers and unions. The policy has been pushed by the Culinary Union, who endorsed Vice President Harris on Friday.

On Saturday, Harris pledged to support that same proposal and end taxes on tips for service and hospitality workers. She also promised to push for minimum wage increases, something some workers and advocates have described as more in line with their policy preferences than the tax proposal. Other commentators have also cautioned against the tax policy on the grounds that it may encourage increased reliance on tips rather than pushing employers to pay fair living wages.

Some Republicans in Congress have introduced legislation designed to end taxes on tips following Trump’s policy pledge. Senator Ted Cruz introduced the “No Tax on Tips Act” in June. A Yale University analysis of that bill found that it would impact just 2.5% of the labor force and 5% of bottom quartile earners.

FULL story at link above.