make your voice heard - save our tips!
A campaign to eliminate the tipped wage has come to Massachusetts. An outside special interest group by the name of “One Fair Wage” is actively gathering signatures to put a question of the ballot in November 2024. This outside special interest group is attempting to eliminate the tipped wage that is so important to servers, Massachusetts's restaurant and hospitality industry, our customers and Massachusetts communities. Eliminating the tipped wage would be especially harmful to small and independent Massachusetts restaurants and those who serve in these communities.
WHAT: THREAT TO HOSPITALITY BUSINESSES & EMPLOYEES
“One Fair Wage” plans to bring a ballot question to voters in November 2024 to eliminate the tipped wage by gradually increasing it from $6.75 to $15 per hour. Servers are already, guaranteed the full minimum, and most earn much more. The highest paid employees in any restaurant are the tipped employees. If you are like any of the thousands of restaurant guests that dine in one of Massachusetts’ full-service restaurants each year, you are adding anywhere from 18%-30% as gratuity when the final bill comes. This is not a discussion about the minimum wage, but rather about compensation model.
IMPACT FOR BUSINESS: RESTAURANT & HOSPITALITY BUSINESS PROFITABILITY UNDER ATTACK
These significant changes would be crippling to the restaurant, foodservice, and hospitality industry, which is already struggling with nearly three years of historically high inflation driven by the pandemic – for food, labor, energy, credit card fees, supplies, rent and services. The USA already lost 100,000+ restaurant locations during the pandemic and many operators continue to struggle to regain profitability and maintain positive cash flow, especially small and independent operators. The tip credit allows restaurants to staff multiple employees in a busy dining room. A restaurant owner can employ more than two full time waitstaff employees for the same hourly rate as one minimum wage employee. This is a win for the tipped employee because they are the highest compensated employee in the restaurant, it’s a win for the guest who is getting a full-service experience, and a win for the restaurant operator who gets to employ as many people as possible to ensure the operation runs smoothly.
IMPACT FOR WORKERS: SERVERS LIKELY TO SEE EARNINGS DECLINE
Massachusetts’ tipped employees have supported families, bought houses, and educated children, all because of their tipped income and they do not want to see the flexibility and ability to earn significant money in relatively short hours that come along with this job go away. Eliminating the tipped wage in Massachusetts would force restaurants to implement service charges, like we are seeing in Washington, D.C., where voters agreed to this change. Operators in D.C. are now struggling with higher fixed wages and angry customers. Further, servers who now average $27 per hour, would no longer receive the same tips from customers, who are forced to pay 10-30% for service fees to help operators cover higher labor costs. At the MRA, we have heard from servers pleading with us to help stop this legislation.
TAKE ACTION: JOIN THE MRA’s PLAN TO PROTECT OUR INDUSTRY
We are focused on many strategies to alert the public, restaurant and hospitality businesses, employees, elected officials and community leaders to this possible ballot question in Massachusetts. The MRA is building a coalition to fight these out-of-state, anti-business groups that are attempting to hurt the hospitality industry. The MRA will battle to preserve the tipped wage, which is critical to the hospitality industry and servers in restaurants who overwhelmingly want their tipped wages to continue. As our industry operates on extremely thin margins, this is a very important issue. With historic inflation over the past two years, soaring food costs and wage rates, rising credit card fees and supply chain issues, many restaurants are struggling to survive after the pandemic. This ballot question by special interests would be crippling for Massachusetts’ restaurant, foodservice and hospitality industry, especially small and independent operators.
WHAT: THREAT TO HOSPITALITY BUSINESSES & EMPLOYEES
“One Fair Wage” plans to bring a ballot question to voters in November 2024 to eliminate the tipped wage by gradually increasing it from $6.75 to $15 per hour. Servers are already, guaranteed the full minimum, and most earn much more. The highest paid employees in any restaurant are the tipped employees. If you are like any of the thousands of restaurant guests that dine in one of Massachusetts’ full-service restaurants each year, you are adding anywhere from 18%-30% as gratuity when the final bill comes. This is not a discussion about the minimum wage, but rather about compensation model.
IMPACT FOR BUSINESS: RESTAURANT & HOSPITALITY BUSINESS PROFITABILITY UNDER ATTACK
These significant changes would be crippling to the restaurant, foodservice, and hospitality industry, which is already struggling with nearly three years of historically high inflation driven by the pandemic – for food, labor, energy, credit card fees, supplies, rent and services. The USA already lost 100,000+ restaurant locations during the pandemic and many operators continue to struggle to regain profitability and maintain positive cash flow, especially small and independent operators. The tip credit allows restaurants to staff multiple employees in a busy dining room. A restaurant owner can employ more than two full time waitstaff employees for the same hourly rate as one minimum wage employee. This is a win for the tipped employee because they are the highest compensated employee in the restaurant, it’s a win for the guest who is getting a full-service experience, and a win for the restaurant operator who gets to employ as many people as possible to ensure the operation runs smoothly.
IMPACT FOR WORKERS: SERVERS LIKELY TO SEE EARNINGS DECLINE
Massachusetts’ tipped employees have supported families, bought houses, and educated children, all because of their tipped income and they do not want to see the flexibility and ability to earn significant money in relatively short hours that come along with this job go away. Eliminating the tipped wage in Massachusetts would force restaurants to implement service charges, like we are seeing in Washington, D.C., where voters agreed to this change. Operators in D.C. are now struggling with higher fixed wages and angry customers. Further, servers who now average $27 per hour, would no longer receive the same tips from customers, who are forced to pay 10-30% for service fees to help operators cover higher labor costs. At the MRA, we have heard from servers pleading with us to help stop this legislation.
TAKE ACTION: JOIN THE MRA’s PLAN TO PROTECT OUR INDUSTRY
We are focused on many strategies to alert the public, restaurant and hospitality businesses, employees, elected officials and community leaders to this possible ballot question in Massachusetts. The MRA is building a coalition to fight these out-of-state, anti-business groups that are attempting to hurt the hospitality industry. The MRA will battle to preserve the tipped wage, which is critical to the hospitality industry and servers in restaurants who overwhelmingly want their tipped wages to continue. As our industry operates on extremely thin margins, this is a very important issue. With historic inflation over the past two years, soaring food costs and wage rates, rising credit card fees and supply chain issues, many restaurants are struggling to survive after the pandemic. This ballot question by special interests would be crippling for Massachusetts’ restaurant, foodservice and hospitality industry, especially small and independent operators.
Should Massachusetts restaurants be required to pay tipped employees the full minimum wage?
Tipped employees in Massachusetts are already paid the full minimum wage. Both Federal and State law require employers to make up the difference to ensure the employee is paid minimum wage for all hours worked.
Tipped employees are the highest compensated workers in any restaurant setting, earning well above minimum wage, with many averaging twenty five, thirty five, and sometimes fifty dollars per hour!
This compensation model has allowed the highest percentage of employees to earn the highest average wage. Do you know who likes this system the most? The tipped employees themselves! A recent survey of tipped employees from industry publication Upserve determined that 97% prefer the current model of base wage plus tips over straight hourly compensation. If given the opportunity, tipped employees would not trade places with any hourly compensated employees in their restaurants.
Servers are not the asking for this, as this radical change is being driven by activists not in the restaurant industry. One national labor group, The Restaurant Opportunities Center, has pushed the narrative that the tipping system needs to go away, but do they really have server’s best interest in mind? One of their organizers recently quipped “you can’t collect union dues if employees are earning their income through tips.”
Servers across the country have rallied to say “leave us alone” because the current system works for them. A recent Maine op-ed was entitled “I am a restaurant server and I don’t need anyone to save me!” At the MRA, we have heard from servers pleading with us to help stop this legislation.
Much has been made about the 7 states that do not permit restaurant owners to claim a tip credit. Contrary to what the activists would lead you to believe, this is not a recent development, these states have not had a tip credit for decades.
According to Federal data, the average Massachusetts tipped employee earns more than a dollar per hour more than California servers who are paid the state minimum wage. The current compensation model works for tipped employees because they can maximize their income in the relative short hours that come with being a restaurant server.
Tipped employees in Massachusetts are already paid the full minimum wage. Both Federal and State law require employers to make up the difference to ensure the employee is paid minimum wage for all hours worked.
Tipped employees are the highest compensated workers in any restaurant setting, earning well above minimum wage, with many averaging twenty five, thirty five, and sometimes fifty dollars per hour!
This compensation model has allowed the highest percentage of employees to earn the highest average wage. Do you know who likes this system the most? The tipped employees themselves! A recent survey of tipped employees from industry publication Upserve determined that 97% prefer the current model of base wage plus tips over straight hourly compensation. If given the opportunity, tipped employees would not trade places with any hourly compensated employees in their restaurants.
Servers are not the asking for this, as this radical change is being driven by activists not in the restaurant industry. One national labor group, The Restaurant Opportunities Center, has pushed the narrative that the tipping system needs to go away, but do they really have server’s best interest in mind? One of their organizers recently quipped “you can’t collect union dues if employees are earning their income through tips.”
Servers across the country have rallied to say “leave us alone” because the current system works for them. A recent Maine op-ed was entitled “I am a restaurant server and I don’t need anyone to save me!” At the MRA, we have heard from servers pleading with us to help stop this legislation.
Much has been made about the 7 states that do not permit restaurant owners to claim a tip credit. Contrary to what the activists would lead you to believe, this is not a recent development, these states have not had a tip credit for decades.
According to Federal data, the average Massachusetts tipped employee earns more than a dollar per hour more than California servers who are paid the state minimum wage. The current compensation model works for tipped employees because they can maximize their income in the relative short hours that come with being a restaurant server.
