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Plan to Raise Hourly Minimum Wage for Tipped Employees

Home Forums General Columbus Discussion Plan to Raise Hourly Minimum Wage for Tipped Employees

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    Think Tank: Higher Tipped Minimum Wage Bad For Ohio

    August 9, 2012

    by Steve Brown

    89.7 NPR News Morning Anchor

    A right-leaning think tank is touting a new report they say shows Ohio would lose more than 11,000 jobs under a plan to more than triple the hourly minimum wage for tipped employees. More than 100 House Democrats, including Dennis Kucinich, Marcy Kaptur, and other Ohioans have argued for the tipped minimum wage increase from $2.13 to $6.86 an hour. It would be the first time Congress changed the $2.13 an hour wage since 1991.

    READ MORE: http://beta.wosu.org/news/2012/08/09/think-tank-higher-tipped-minimum-wage-bad-for-ohio/



    This can’t be good for restuarants that already struggle.

    The sentiment sounds good, but per the dept of labor.

    “The Fair Labor Standards Act (FLSA) requires payment of at least the federal minimum wage to covered, nonexempt employees. An employer of a tipped employee is only required to pay $2.13 an hour in direct wages if that amount plus the tips received equals at least the federal minimum wage,”

    In other words tipped employees will always make minimum wage. (assuming their employers are in compliance)



    I would rather the restaurants paid the servers a living wage instead of the servers having to count on inconsistent tips for take home pay. If it is across the board I do not see a problem with it. It would just change the way the money is funneled through the system.



    Here’s an interesting article about an Austin restaurant[/url] that pays liveable wages.





    geoyui said:
    Here’s an interesting article about an Austin restaurant[/url] that pays liveable wages.

    I don’t know their wage scale. But I believe that Northstar Cafe does this as well.



    I’d rather the tip be included in the price of the food and the servers get paid a normal wage to begin with, like Northstar does. Certainly doesn’t seem to hurt their level of service.


    Analogue Kid

    In for lizless’ take on the matter.



    It pisses me off when restaurants make servers clean and fill ketchup, etc while making $3.19 an hour. At least those times they aren’t being tipped should be paid at the actual minimum wage.



    Tipped employees can make between $10-$25/hour depending on the bar/restaurant they work in. On average a tipped employee only will claim 30%-70% of actual tips. So as far as taxes goes they make out.

    In my experience the employees don’t see that much larger checks as the tipped minimum wage goes up. Most of it is eaten by the government, and hurts the businesses.

    Then the drink/food prices have to go up to compensate for the shrinking bottom line. Most restaurants/bars have to pay a “rent+” system. They pay rent plus a percentage of sales. So if they raise their prices, then their rent goes up as well.

    Restaurants that pay a “living wage” have a different business model. Most servers I know would rather walk out of their respective jobs with $100+ per night then work for livable wage.

    That doesn’t even touch the high end restaurants where the check average is $70+/person.



    It frustrates me that when the minimum wage goes up, all the other wages don’t go up in relation to that.
    I know the MW has risen multiple times in the last 10 years or so, but my rate of pay never rises, beyond that .09 per hour longevity “bonus”.



    It pisses me off when restaurants make servers clean and fill ketchup.

    The opaque ketchup squeeze bottle with the cap that doesn’t unscrew was one of the best inventions ever. How gross is it to see a completely full ketchup bottle with a label that’s all filthy and torn. Plus, if your going to use Sysco or GFS ketchup, at least have the decency to not put it in a Heinz bottle.


    Elizabeth Lessner

    Analogue Kid said:
    In for lizless’ take on the matter.

    Since we opened in 2001, we have always paid our bar/serving staff at over twice the minimum wage by paying $5/hour to start and our host staff is at $7/hr to start (hosts earn less in tips). I like that this wage helps the tipped staff to pay off their portion of their medical/dental/vision coverage. If we make cuts, it won’t be at the expense of our staff’s health and well being, we’ll cut corners elsewhere first. If we have to charge a quarter more for your beer to pay this, we think it’s a fair trade off.



    I love that and think that’s great; what I love most about this statement is that is a choice made by lizless, not by the all knowing gov’t. SHE decided that this was best for her business and best for the employees. A great case study in that the free enterprise does indeed work.

    Well done.



    This proposal is a bad idea. Clearly the wage needs to be $6.87.

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