A proposed measure in Delaware would increase base wages for tipped workers (servers, bartenders, etc.) by 169.5% at the start, and as high as 573% if minimum wage reaches $15.
In reality, this is just another market manipulation tool and an example of state government micromanaging businesses.
Servers are averaging $25 an hour in areas like Sussex County, and are already guaranteed to earn at least the minimum wage. In fact, 69% of tipped workers said that they would favor keeping their tips over a “substantial increase” in their hourly wage.
This could push establishments to replace tipping with a mandatory service charge, actually putting less money in servers’ pockets at the end of the day, and resulting in less profit for restaurants that are not steadily popular.
When D.C. introduced similar legislation last year, over 100 local bar and restaurant owners spoke out against it, citing added labor costs, increased menu prices, and reduced employee hours as just a few of the associated consequences.
As if this wasn’t enough to deter such action, jobs are also at stake. A report from the University of Washington revealed a loss of over $100 per month for low waged workers and 5,000 fewer jobs from a similar bill.
Less pay, less profit, fewer jobs, and higher prices sound like more of an issue than the one Delaware lawmakers are trying to fix.
Why is this on the menu?