OCEAN CITY – Industry leaders are following a bill that will impact tipped workers in the local hospitality sector.
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 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. In addition to 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.
Gotta actually earn the tip!
The tip should be above the hourly wage as it represents the merit-pay for service above and beyond!
If this causes the prices to go up (and tips to go down) – those are the unintended (but known) consequences of the bill. The staff will have a consistent income based on hours worked and the tips should then go to the staff that earn it by going above and beyond.
Forcing the wage will also force the standards of performance – which I am ok with as well!
It’s all about increasing tax revenue for the government because they can’t accurately tax tips . The government sucks
My TIPS to My server are NOT ANY of the damn Govt’s Business !!! This is NOT RUSSIA / CHINA
MY $$$$ MY Business !!!!
No thanks! I have no desire to dine at an upscale restaurant and be waited on by a McDonalds’ employee. Leave it to our inept legislature to fix a problem that ain’t broke.
A whole bunch of whining from restaurant owners who are living high on the hog expecting the public to pay the wages of its staff.
Time to ditch this ridiculous system
TIPS are NONE of the Govt’s damn Business & NOT a wage !!!! Govt has NO right to Tax TIPS !!!! PERIOD
Restaurants & the Govt have been RAPING workers for too many Years so Don’t EVER complain about $15 Hr !
MIN WAGE should apply to ALL Jobs ALL 50 states !!! PERIOD Just who the hell thinks they are Exempt
just because they are a Restaurant ?? !!!!! No business Better than the others !!!!
Workers should get the $15 hr Plus TIPS Tax FREE !!!!! PERIOD
Those who got RAPED @ $3.63 hr for YEARS should SUE the GOVT & their Employers for Millions & get
Back Pay @ $15 hr Plus ALL the Taxed Tips Back !!!!!
Slavery in America was what Restaurants have been getting away with !!!!! $3.63 hr Crumbs !!! Taxing Tips !!
Alot of customers leave NO tip & many Restaurants charged TAX anyway on a Tip the Server Never got !!! Illegal
WHERE are the LAWYERS today ???? Tips are a GIFT between people !!! NOT a Taxible Wage !!!!
As bad as the Airlines charging YOU Twice for Luggage !!! It was Always Part of your Ticket & included !!!
Then they started charging it on top of the ticket that already included it Which is Extra Charging !!!!
Where were the LAWYERS ???? These luggage charges should be ILLEGAL !!! You already Paid it as Part of
Your damn Ticket for YEARS !!!!
Restaurants have been getting SPECIAL treatment from the Govt for too many years !!!! They are No Better
than ANY other business & should be REQUIRED to pay same min WAGE all others Pay !!!! PERIOD
If the crybabies can’t afford it THEN they can’t afford to be in Business so Get OUT of it !!!! SOLVED !!! Waaaa
We eat out Alot & are tired of Paying the Restaurant’s Pay Roll for them !!! NOT our Job we are the customer !