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Tipped minimum wage debate rages across the country - Dallas Business Journal

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The tipped minimum wage is becoming a focal point of debate. Here's the state of play across the country.

launched her Korean restaurant Miss Kim, in Ann Arbor, Michigan, six years ago and decided not to use tips, instead offering a higher minimum wage of $14 per hour. federal"tipped minimum wage" has remained at $2.13 an hour since 1991

Ultimately the business kept the higher wage but also added in tips, which were then shared among the non-management staff, Kim said. That gave everyone at the restaurant a $2 to $4 an hour boost in wages on average. When the pandemic hit, Kim didn’t have the same staffing crunch that other restaurants did, and was able to switch people between the front of the house and the back of the house knowing their pay wouldn’t suffer.

In Washington, D.C., voters once again voted to eliminate the tipped minimum wage while voters in Portland, Maine, ended up voting to retain the tipped minimum wage. But cutting out the tipped minimum wage will lead to chaos for small business owners, said“Voters in D.C. have been misled into supporting a pay cut for the tipped restaurant workers, and many restaurant owners will have to make drastic changes that will not work as proponents promised.

 

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