REPORTER: SOME SURPRISING REACTION INCLUDING FROM TIPPED WORKERS WHO WORRY ABOUT MAKING LESS MONEY AND/OR OR LOSING THEIR JOBS. TALK OF PAYING TIPPED WORKERS $15 AN HOUR ADDED MORE ENERGY TO THE FRANTIC PACE. >> IT WOULD BE WONDERFUL. >> I WOULD MAKE A LOT MORE MONEY. REPORTER: THE LEGISLATION SPONSORED BY SENATOR ELLIS INCREASES THE BASE WAGE FOR SERVERS OVER FIVE YEARS TO $15 AN HOUR. >> WE HAVE TO MAKE SURE THAT PEOPLE WILL ALWAYS GET A WAGE THAT THEY CAN PAY THEIR RENT. REPORTER: UNDER THE BILL THE BUSINESS MUST ALSO COMPLETE EQUITY TRAINING AND CERTIFY IT DOES NOT INCLUDE THE CURRENT TIP CREDIT AMOUNT AS PART OF THE EMPLOYEES WAGES. THE TIP CREDIT IS THE DIFFERENCE BETWEEN THE CURRENT MINIMUM WAGE AND THE BASE $3.63 AN HOUR THE EMPLOYER IS OBLIGATED TO PAY. >> IF THAT HAPPENED, I’M GOING BACK TO SERVING. REPORTER: SOME ECONOMISTS CONSIDER THE PROPOSAL A JOB KILLER THAT WILL LIMIT TIPS AND FORCE RESTAURANTS TO CLOSE AND SOME SERVERS ARE CONCERNED CUSTOMERS WILL TIP LESS. ACCORDING TO A CALIFORNIA INVESTIGATION, THE RESEARCH INDICATES WORKER EARNINGS DROP I 5.6% AND TIPPED EMPLOYEES HOUSEHOLDS WILL LOSE $8,000 A YEAR. >> OUR TIPPED EMPLOYEES MAKE REALLY GOOD MONEY. I DON’T THINK, OTHER THAN WHAT IT WOULD DO TO PRICING ON THE TABLE, WHAT OUR CUSTOMERS WOULD EXPERIENCE, I THINK IT IS A BAD BILL. REPORTER: THERE IS TALK IN THE SENATE TO ROLL THE BILL INTO THE MINIMUM WAGE BUT STATEHOUSE LEADERS SAY THAT IS UNLIKELY TO HAPPEN BECAUSE THERE IS STILL A LOT OF WORK TO DO ON THE GOVERNOR’S PROPOSAL. ACCORDING TO A BILL ANALYSIS IT WILL COST TAXPAYERS MORE THAN $264,000 DEGREE IN OFFICE TO MONITOR IT AND DEVELOP REGULATIONS.
Bill would increase tipped minimum wage to $15 an hour for restaurant servers
Not all servers on board with proposal over fears of less earnings, tips
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Updated: 5:24 PM EST Mar 3, 2023
Maryland state lawmakers are considering a bill to put more money into the pockets of restaurant workers.House Bill 803 would give restaurant servers a base hourly wage of $15, plus tips."We will make sure that people will always get a wage where they can at least pay their rent," said the bill's sponsor, Senate Assistant Deputy Majority Leader Arthur Carr Ellis, D-District 28.It's volume that determines a good payday for servers at Chick & Ruth's Delly in Annapolis, who earn $3.63 an hour plus tips."I would like that. Absolutely, that would be a good change for us," said Aneesah Pack, a server."That would make my life very, very easy. If I knew I was going to make that much," said Jeanette Doffernyre, a server.Under the bill, businesses must also complete equity training and certify that it does not include the current tip credit amount as part of employee wages. The tip credit is the difference between the current minimum wage and the hourly base of $3.63, which the employer is obligated to pay.Business owners oppose the bill and not all servers are in favor of it either out of fear over making less money and losing their jobs. Some servers said they are concerned people will tip less if their base pay increases. "If that happens, I'm going back to serving," said Shelly McFaddyen, a restaurant manager.Some economists consider the proposal a job killer that will limit tips and force restaurants to close. A University of California-Irvine study found that every dollar increase in the tipped minimum wage will cut jobs by 6%. The research indicates worker earnings will drop by 5.6%, and tipped employee households will lose $8,000 a year.STUDIES:A Survey of US Economists on a $15 Federal Minimum Wage (Carnegie Mellon)The Case for the Tip Credit (Employment Policies Institute)State Impacts of a $15 Tipped Minimum Wage (Miami and Trinity universities)"If that bill would pass, I think it would have a massive impact on prices, on everything we have to sell to our consumers," said Rusty Romo, owner and general manager of Harry Browne's Restaurant in Annapolis. "Our tipped employees here, at least at our restaurant, make really good money, and I don't think -- other than what it would do to pricing on the table, what our customers would experience -- it's a bad bill."According to a bill analysis, it will initially cost taxpayers more than $264,000 to create an office to monitor compliance, staff it and develop regulations. There's also talk of rolling the bill into the governor's minimum wage legislation. But legislative leaders said that's unlikely because there is still much work to do on the governor's proposal. | VIDEO BELOW: Moore on minimum wage: 'Maryland families will fall further behind' without increase
ANNAPOLIS, Md. — Maryland state lawmakers are considering a bill to put more money into the pockets of restaurant workers.
House Bill 803 would give restaurant servers a base hourly wage of $15, plus tips.
"We will make sure that people will always get a wage where they can at least pay their rent," said the bill's sponsor, Senate Assistant Deputy Majority Leader Arthur Carr Ellis, D-District 28.
It's volume that determines a good payday for servers at Chick & Ruth's Delly in Annapolis, who earn $3.63 an hour plus tips.
"I would like that. Absolutely, that would be a good change for us," said Aneesah Pack, a server.
"That would make my life very, very easy. If I knew I was going to make that much," said Jeanette Doffernyre, a server.
Under the bill, businesses must also complete equity training and certify that it does not include the current tip credit amount as part of employee wages. The tip credit is the difference between the current minimum wage and the hourly base of $3.63, which the employer is obligated to pay.
Business owners oppose the bill and not all servers are in favor of it either out of fear over making less money and losing their jobs. Some servers said they are concerned people will tip less if their base pay increases.
"If that happens, I'm going back to serving," said Shelly McFaddyen, a restaurant manager.
Some economists consider the proposal a job killer that will limit tips and force restaurants to close. A University of California-Irvine study found that every dollar increase in the tipped minimum wage will cut jobs by 6%. The research indicates worker earnings will drop by 5.6%, and tipped employee households will lose $8,000 a year.
STUDIES:
"If that bill would pass, I think it would have a massive impact on prices, on everything we have to sell to our consumers," said Rusty Romo, owner and general manager of Harry Browne's Restaurant in Annapolis. "Our tipped employees here, at least at our restaurant, make really good money, and I don't think -- other than what it would do to pricing on the table, what our customers would experience -- it's a bad bill."
According to a bill analysis, it will initially cost taxpayers more than $264,000 to create an office to monitor compliance, staff it and develop regulations.
There's also talk of rolling the bill into the governor's minimum wage legislation. But legislative leaders said that's unlikely because there is still much work to do on the governor's proposal.
| VIDEO BELOW: Moore on minimum wage: 'Maryland families will fall further behind' without increase
