The last of these five ballot questions would raise the tipped minimum wage over five years with the first increase lifting the floor to $9.60 an hour next year. By 2029 the minimum wage for tipped workers would be $15, the same as the current minimum wage for other Massachusetts employees. Between now and the end of 2028, the amount that employees make through wages and tips must at least equal the minimum wage; in the meantime employers that pay tipped workers at least the state minimum wage could then pool tips with all employees. After 2029 restaurants could choose for their establishments to be tip-free.
Many restaurants and their associations believe raising the tipped minimum wage would severely impact already struggling establishments with rising costs amid the post-pandemic recovery; a number of restaurant employees themselves oppose the measure out of fear that it would reduce the tips they receive, which, in some cases, can bring their earnings well above the current minimum wage.
Workers in the industry are also not unanimous in their opinion about the question. As the Boston Globe noted, the “debate over the tipped minimum wage ballot question lifts the lid on class divides within the restaurant industry.” This ballot question would help vulnerable workers the most: low-income, immigrants, and non-English speakers.
The Center for State Policy Analysis evaluated Question 5 and found the following:
- Eliminating the tipped minimum wage would likely increase earnings for waitstaff, bartenders, and other tipped workers;
- Restaurants and other tip-dependent businesses will face higher costs from having to cover the full minimum wage;
- Restaurants will likely compensate with a mix of price increases, new service fees, reduced hiring, and potentially lower profits;
- Allowing tips to be shared with kitchen staff could help equalize pay between front- and back-of-house workers;
- The District of Columbia is currently phasing out its tipped wage, leading to experimentation among restaurants and a broad conversation among diners about the appropriate role and size of tips.
Now, if you’ve ever been to Europe you will have noted that there is much less tipping in Europe than here in the United States. And the trend seems to be to require (or at least encourage) more and more tipping, even under circumstances that seem questionable. For example, a local Brazilian restaurant in Worcester has a self-service bar but still encourages tipping; a local hot dog stand outside of a brewery also encourages tipping. What are the tips for, since I’m not receiving any individualized “service,” and in many cases those who are providing the services are the owners of these establishments, and not their employees.
The other thing that strikes me is that if this change would result in increasing costs for restaurants it suggests that those establishments are not already doing what they are supposed to be doing, which is to insure that tipped employees are making at least the minimum wage.
Nevertheless, the prediction that this change would result in increased costs for restaurants at a time when (many of) those restaurants are already struggling financially does not bode well for the industry. It would probably shake out some restaurants that are not really profitable now. And that is unfortunate.
Even so, I personally would like for us to adopt more of the European model where tipping is really to reward exceptional service and otherwise the cost of meals is just what it is. That would require a substantial cultural shift, and the road ahead might be bumpy.
For the reasons stated above, I cautiously endorse this ballot initiative.