Question 5: Minimum Wage for Tipped Workers

Description

As part of our ongoing advocacy for our members, the Peabody Area Chamber of Commerce’s Government Relations Committee is pleased to host a special event featuring Steve Clark President of the  Massachusetts Restaurant Association. Join us as we explore the potential impact of Question 5, a crucial issue appearing on the ballot this fall, which could have significant implications for businesses in the restaurant and hospitality industry. This informative session will provide valuable insights into how the proposed measure may affect local businesses, employees, and the broader economy.

Summary
An out-of-state activist group “One Fair Wage” (OFW) filed a ballot question to eliminate the tip credit. Activists from California who are critical of the tipping system are pushing fora ballot question to eliminate the tip credit and could institute tip sharing with all employees.
 
The Committee to Protect Tips was founded to oppose a ballot question that is scheduled to be on the November Election ballot. We consist of restaurant owners, business groups, servers, bartenders and other tipped employees who strongly oppose the “tip pooling” portion of this ballot question.
 
Tipped employees do not want this, nor have they asked for it.  Recent tipped employee survey:

The results of the survey indicated:

• 86% think the current tipping system works for them.
• 90% believe that if tipped wages are eliminated, tipped employees will earn less.
• 88% oppose a mandatory tip pool where tips are shared with the kitchen and other non-service staff.
• 91% say they prefer the current system, with a lower base wage and tips that provide the ability to earn more than the minimum wage.
• 56% of respondents report earning more than $30.00/per hour.

• Full-service restaurants in D.C. have cut thousands of jobs.
• 96% of full-service restaurants in D.C. have raised prices
• 70% of sit-down restaurants have added service fees or plan to as the tip credit disappears.
• 32% of Washingtonians are dining more often outside the District’s boarders