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Ocean City hospitality industry condemns Maryland tip elimination bill

One Fair Wage Act would raise restaurant workers’ pay to $15/hour

Industry leaders are following a bill that will affect not only tipped workers in the local hospitality sector, but their employers as well.

In January, Maryland legislators introduced a bill that will, among other things, increase the minimum wage for tipped workers to $15 and eliminate the state’s tip credit model.

While proponents believe the legislation will improve working conditions in the service sector, those in opposition argue it could lead to higher menu prices, layoffs and reduced working hours, among other things.

“Elimination of the tipped credit would have a devastating effect on our industry,” said Susan Jones, executive director of the Ocean City Hotel-Motel-Restaurant Association. “It would lead to terrible service, as there is no incentive to be nice or extra helpful, and there would be more fast-casual service restaurants pop up with laptop ordering and only a food-runner.”

Last year, Maryland Gov. Wes Moore (D) signed into law the Fair Wage Act of 2023, increasing the minimum hourly wage to $15. However, the legislation excludes tipped employees, who currently hold an hourly minimum wage of $3.63.

To that end, at the start of this year’s session of the Maryland General Assembly, lawmakers introduced the One Fair Wage Act of 2024, a bill to increase the minimum hourly wage of tipped workers to $15. Along with the wage increase, the legislation also proposes an elimination of Maryland’s tip credit provision, which applies an employee’s gratuities into the minimum wage requirement.

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4 thoughts on “Ocean City hospitality industry condemns Maryland tip elimination bill”

  1. Well the DELMARVA sure didnt vote for Wes WANTS Moore…..thank PG, Montgomery counties and Baltimore. Booooooooo ruin it for all.

    Wes and the legislature needs to go.

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