SUPPORT FOR A TIP CREDIT IN ST. PAUL

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The Fight for $15 has come to St. Paul. That's a good thing! And just like in Minneapolis, WE WANT A TIP CREDIT!

Just like our fight in Minneapolis we have a Mayor that doesn't care to listen to the full service restaurant workers who will be most intimately impacted by a $15 minimum wage without a tip credit. Luckily in St. Paul we have more time, a 3rd party organization making the recommendation, a City Council that is actually listening AND a community that is more aware of what is happening.! 

So, what is a tip credit and why do we need it?

A tip credit is part of a pay model utilized by 43 states in America because it allows for the high labor, person count model a full service restaurant demands. A tip credit is the dollar amount that makes up the difference between the tipped tiered wage and the prevailing minimum wage. It allows the restaurant/workers to count the taxable tipped income of the server toward the prevailing minimum wage while also, by law, guaranteeing that the employee makes the full minimum wage at all times.

In March of 2017, the Minnesota Restaurant Association conducted a survey of its members to find the hourly earnings as is reported to the IRS for employees in the restaurant community. The results of this survey, which included large and small restaurants of varying price points and locations in the city, showed that support staff positions (such as busboys and hosts) make $12.64 on average, line cooks averaged $13.89, and tipped workers averaged $28.56. What this shows is the importance of bringing equity to our BOH brothers and sisters, not a need to raise the wage for servers.

THIS ISN'T ABOUT POLITICS, IT'S ABOUT MATH.

In areas like California and Seattle where they are approaching $15/hr without a tip credit we are seeing lost jobs and hours for support staff and BOH, switches to counter service models, increased automation, mass restaurant closure and an influx of service fee/no tip models.

We need to band together and #SAVEOURINDUSTRY

 



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