Voglio sapere a riguardo di…

52984

Federal Register / Vol. 86, No. 183 / Friday, September 24, 2021 / Rules and Regulations
C. Costs
rule, the Department uses both the number of establishments and the number of firms to estimate a potential range for regulatory familiarization costs. The lower bound of the range is calculated assuming that one specialist per firm will review the rule, and the upper bound of the range assumes one specialist per establishment.
The most recent data on private sector entities at the time this rule was drafted are from the 2017 Statistics of U.S.
Businesses SUSB.19 The Department limited this analysis to a few industries that were acknowledged to have tipped workers in the 2020 Tip final rule.
These industries are classified under the
1. Rule Familiarization Costs Regulatory familiarization costs represent direct costs to businesses associated with reviewing the new regulation. It is not clear whether regulatory familiarization costs are a function of the number of establishments or the number of firms.18
Presumably, the headquarters of a firm will conduct the regulatory review for businesses with multiple locations, and may also require these locations to familiarize themselves with the regulation at the establishment level. To avoid underestimating the costs of this
North American Industry Classification System NAICS as 713210 Casinos, 721110 Hotels and Motels, 722410
Drinking Places Alcoholic Beverages, 722511 Full-service Restaurants, 722513 Limited Service Restaurants, and 722515 Snack and Nonalcoholic Beverage Bars. The Department understands that there may be entities in other industries with tipped workers who may review this rule, but did not receive any comments about other industries that should be included in the analysis. See Table 1 for a list of the number of firms and establishments in each of these industries.

TABLE 1FIRMS AND ESTABLISHMENTS IN TIPPED INDUSTRIES
Industry NAICS
NAICS
NAICS
NAICS
NAICS
NAICS

713210
721110
722410
722511
722513
722515

Firms
Establishments
Casinos
Hotels and Motels
Drinking Places Alcoholic Beverages
Full-Service Restaurants
Limited Service Restaurants
Snack and Nonalcoholic Beverage Bars

221
42,795
39,323
217,111
157,353
47,112

292
53,869
40,156
250,871
251,100
65,010

Total

503,915

661,198

Source: Statistics of U.S. Businesses 2017.

The Department believes 30 minutes per entity, on average, to be an appropriate review time for this rule, because most of the information related to the CAA amendments that employers would have to familiarize themselves with was already captured in the 2020
Tip final rule. The changes in this rule are small, and one is consistent with the Departments existing enforcement. This review time represents an average of employers who will spend less than 30
minutes reviewing, and others who will spend more time. In the NPRM, the Department estimated that average review time would be 15 minutes, but has increased it here to account for the additional provisions on managers participation in tip pools.
The Departments analysis assumes that the rule would be reviewed by Compensation, Benefits, and Job Analysis Specialists SOC 131141 or employees of similar status and comparable pay. The median hourly wage for these workers was $32.30 per hour in 2020, the most recent year of data available.20 The Department also assumes that benefits are paid at a rate of 46 percent 21 and overhead costs are
paid at a rate of 17 percent of the base wage, resulting in a fully loaded hourly rate of $52.65.
The Department estimates that the lower bound of regulatory familiarization cost range would be $13,265,562 503,915 firms $52.65
0.5 hours, and the upper bound, $17,406,037 661,198 establishments
$52.65 0.5 hours. The Department estimates that all regulatory familiarization costs would occur in Year 1.
Additionally, the Department estimated average annualized costs of this rule over 10 years. Over 10 years, it would have an average annual cost of $1.8 million to $2.3 million, calculated at a 7 percent discount rate $1.5 million to $1.9 million calculated at a 3 percent discount rate. All costs are in 2020
dollars.

18 An establishment is a single economic unit that produces goods or services. Establishments are typically at one physical location and engaged in one, or predominantly one, type of economic activity. An establishment is in contrast to a firm, or a company, which is a business and may consist of one or more establishments.

19 Statistics of U.S. Businesses 2017, https
www.census.gov/data/tables/2017/econ/susb/2017susb-annual.html, 2017 SUSB Annual Data Tables by Establishment Industry.
20 Occupational Employment and Wages, May 2020. https www.bls.gov/oes/current/
oes131141.htm.

VerDate Sep<11>2014

16:01 Sep 23, 2021

Jkt 253001

D. Transfers Associated With Managers Contributing to Tip Pools As noted above, in the 2020 Tip final rule, the Department implemented section 3m2B of the FLSA by prohibiting employers from including managers or supervisors in mandatory
PO 00000

Frm 00034

Fmt 4700

Sfmt 4700

tip pooling or sharing arrangements. See 29 CFR 531.54c3, d April 30, 2021. The preamble accompanying the 2020 Tip final rule interpreted 531.54c3 and d to prohibit employers from requiring managers and supervisors to contribute, as well as from allowing them to receive, tips from mandatory tip pooling or sharing arrangements. 85 FR 86764. This final rule clarifies that managers and supervisors are not prohibited from contributing to eligible employees in mandatory tip pools or sharing arrangements, but they may not receive tips from tip pools or tip sharing arrangements. If, prior to this final rule, a manager was prevented from contributing to tip pools, but is now able to contribute following this rule, their tipped income and overall earnings could decrease, while the tipped income and overall earnings of the other employees in the tip pool could increase. The magnitude of this change could be estimated by observing how managers and non-manager employees tipped income and overall earnings changed following the provisions of the 2020 Tip final rule that 21 The benefits-earnings ratio is derived from the Bureau of Labor Statistics Employer Costs for Employee Compensation data using variables CMU1020000000000D and CMU1030000000000D.

E:FRFM24SER1.SGM

24SER1