No, Donald Trump Is Not Trying To Steal Servers’ Tips

From: Forbes

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FACT: The proposed rule would rescind a controversial 2011 Obama administration regulation that prohibited back-of-the-house employees from receiving tips. This rule was already the subject of extensive legal scrutiny, first challenged by a lawsuit that included an Oregon server (Susan Ponton) who wanted kitchen staff included in her restaurant’s tip pool:

As a result [of the 2011 DOL rule, Ponton] will be prohibited from continuing to enjoy the benefits from this form of a tip pool, including increased camaraderie between front-of-house and back-of-house employees, a higher level of teamwork among the employees and a higher level of service to customers as a result all of which directly results in higher tips for Ponton and the rest of the employees.

Tip Pooling: Provide Real World Experience to Federal Decision-Makers

The Department of Labor received nearly 400,000 comments on its proposal to authorize the pooling of tips; the overwhelming number of the comments were in opposition to the proposal.

There is an urgent need to supplement the docket with real  world experiences that document the benefits to be achieved from tip pooling. Normally an Interactive Public Docket (IPD) is used to serve this need. Here is an IPD that the Center for Regulatory Effectiveness, CRE, utilized which attracted  nearly a thousand letters–not form letters– from  only one post. There were a number of other posts that received comments in the hundreds.

CFPB seeking feedback from public on enforcement practices

From: Financial Regulation News

By Dave Kovaleski 

The Consumer Financial Protection Bureau (CFPB) is looking for feedback from the public on the bureau’s enforcement processes.

In a Request for Information (RFI) issued this week, the CFPB said it is seeking information to help assess the overall efficiency and effectiveness of its processes related to the enforcement of federal consumer financial law. The RFI gives the public an opportunity to submit feedback and suggest ways to improve outcomes for both consumers and covered entities.

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GAO Criticizes the Regulatory Flexibility Act Analyses of Financial Regulators

From: US GAO

Financial Services Regulations:
Procedures for Reviews under Regulatory Flexibility Act Need to Be Enhanced

GAO-18-256: Published: Jan 30, 2018. Publicly Released: Jan 30, 2018.

What GAO Found

To comply with the Regulatory Flexibility Act (RFA), agencies generally must assess the rule’s potential impact on small entities and consider alternatives that may minimize any significant economic impact of the rule (regulatory flexibility analyses). Alternatively, agencies may certify that a rule would not have a significant economic impact on a substantial number of small entities. GAO found several weaknesses with the analyses of six financial regulators (Board of Governors of the Federal Reserve System, Office of the Comptroller of the Currency, Federal Deposit Insurance Corporation, Securities and Exchange Commission, Commodity Futures Trading Commission, and Consumer Financial Protection Bureau) that could undermine the goal of RFA and limit transparency and public accountability, as shown in the following examples.

CFPB Chief Mulvaney Says Days of ‘Pushing the Envelope’ Are Over

From: Bloomberg

By Robert Schmidt

  • Agency won’t assume firms are ‘bad guys,’ he writes in WSJ
  • Acting chief lays out his vision for controversial regulator

The acting head of the U.S. Consumer Financial Protection Bureau pledged to tone down the agency’s aggressive regulatory and enforcement stance, a posture that has been decried by many of the companies it oversees.

Writing an op-ed in the Wall Street Journal, Mick Mulvaney said he would continue to make sure the bureau enforces consumer protection laws. But, he added, it will not assume that “the bad guys” are the financial services firms it supervises — a belief he attributed to the Democrats who had run the CFPB since it was created in 2010.