April 19, 2018

Does The Tipped Minimum Wage Help Or Hurt Workers: Listeners Weigh In

By Avery Kleinman

In June, Washingtonians will vote on Initiative 77, which, if passed, would phase out the tipped minimum wage and raise it to match the standard one. The upcoming vote is jolting the local service industry, where many workers earn the tipped minimum wage of $3.33 an hour, significantly less than the regular minimum wage of $12.50. Tips from customers make up the difference, unless the tips do not reach that threshold, in which case employers pay the remainder.

The issue has become a flash point both within restaurants and bars, as well as outside of them, where local groups on either side of the issue have launched campaigns to convince the city at large to vote in their favor.

On a recent segment, we heard from guests on both sides of the issue: Ryan Aston, a bartender in D.C. and founding member of Restaurant Workers of America, argued that eliminating the tipped minimum wage would hurt restaurant workers, Jessica Yañez of Restaurant Opportunities Center of Washington, D.C. (ROC-DC), took the opposite stance.

Even more importantly, we heard from you, the listeners, on facebook, twitter, our website, the phone, and email. You had a lot to say.

Many who work in the service industry weighed in.

“As a former server in several locations, I worked at a country club where we were paid $15/hour and that was used to justify not tipping us. Working for $2.50/hr give or take fifty cents or so, the tips were my real income and I made far more than $15/hr. It also incentivized quality service. I gave my all and the majority of the time that was recognized. It was the best paying job I had that didn’t require formal higher education. I understand people are trying to advocate for servers but it sounds like overwhelmingly, those of us who have held this job would not want the change bc it would translate to a pay cut. In much of Europe servers are paid a higher hourly wage than they are here and the first piece of advice offered in all the travel publications is that this means we should not tip so highly! This shift could mean a real pay cut for servers.” Brittany, on facebook

But not everyone who works in D.C.’s restaurant industry agreed. Caller Carlos had a different take.

 

“I work at a D.C. ice cream store where we count on tips to make up the difference between base pay and minimum wage.  This issue affects not only bartenders and wait staff at restaurants, and my guess is that few customers realize it…Hard to rely on a set income when you depend on tips as counter staff… As a scooper, this affects us most during the winter season!  Needless to say, I’m looking forward to the warmer weather and more traffic in store.”

Several bar and restaurant owners joined the conversation, too.

The owner of Martin’s Tavern in Georgetown called in with a similar take.

 

Jessica of DC-ROC argued that the tipped minimum wage contributes to sexual harassment in the restaurant industry.  “Sexual harassment is not about sex, it’s about power. When you work for such a low wage like $3.33 it puts you at a power disadvantage,” she said.

“The ROC sexual harassment narrative is straight up exploiting the powerful #metoo movement for political gain. It’s a deflection because the argument holds no economic water.” Jennifer, on our website

Would raising the minimum wage for tipped workers change how customers tip at restaurants and bars?

“As a diner, I love traveling in the rest of the world where the price on a menu is the price you pay. I hate having to add tips. Just raise the price on the menu to pay the workers a fair wage and let me know ahead what my cost is!  BTW, servers in Europe made a nice living doing it this way!” Kathy, over email

Those who support eliminating the tipped minimum wage say the two-tiered system means that workers don’t always get paid the money they earn.

An anonymous caller said wage theft is especially common for back of the house employees, who are often immigrants.

 

“It IS important to consider how many servers are currently not compensated well due to bias, not quality of service.” Danika, on facebook

What’s your take? How will you vote on Initiative 77 and why? What’s being left out of the conversation? Comment below.