Comment on The Tipped Minimum Wage Didn’t Help Restaurants and Hotels Survive the Pandemic, Says a New Report

The Tipped Minimum Wage Didn’t Help Restaurants and Hotels Survive the Pandemic, Says a New Report

As the debate over raising the minimum wage heats up, there has been renewed attention on the subminimum wage that restaurant servers make in many states, also called the tipped minimum wage. House Democrats’ proposed Raise the Wage Act would increase the minimum wage to $15 an hour over the course of five years, and would also phase out the subminimum wage in the states where it still exists. Not everyone’s happy about either of these ideas: The National Restaurant Association, a trade group that represents large chain restaurants like McDonald’s and Darden Restaurants, argued in a recent op-ed that “wage hikes hurt restaurants” that are “stretched to the brink financially,” and the proposal to strike the tipped minimum wage comes at the wrong time for struggling servers. Will ditching the subminimum wage actually hurt restaurants?

 

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