Earlier this year, we told you about a group of Michigan waitresses who expressed worries over a proposed law that would abolish the tipped minimum wage in the state. Servers and bartenders would then make the same amount per hour as back-of-house or guest service workers, and these waitresses realized that raising the minimum wage can, in some instances, hurt workers.
A Michigan judge has since stepped in and preserved the existing tipped minimum wage, undoubtedly to the relief of servers, who had explained that boosting their wage from around $3.75 to $12 per hour would have actually caused them to earn less money since customers would be inclined to tip less. The workers countered that they would be better off rolling the dice with tips, and the judge appeared to agree.
Rulings like these have yet to deter groups like One Fair Wage, which has already lobbied – either by ballot or legislative action – to raise the tipped minimum wage (which the group notes as the “sub-minimum wage”) in 25 states and counting. The group is helmed by Saru Jayaraman, who argues that workers need advocates without unions. The group, however, wields union-style tactics, much like the Fight For $15 and similar campaigns funded by the SEIU and UNITE HERE.
Those campaigns are finding some success. Eight states have thus far abolished the tipped minimum wage. That includes Alaska ($10.85) and California ($15.50), with the latter facing a 2024 ballot measure to raise the minimum wage to $18, and that says nothing of the on-hold effort of $22 per hour for fast food workers. Such moves hinder the ability of franchisees and small business owners to continue operations. After all, businesses can only pass increased labor costs onto customers to a certain degree.
In Chicago, the SEIU has ceased to be content with the Fight For $15, so the union lobbied Chicago politicians for a $25 minimum wage. That battle has intensified with Mayor Brandon Johnson openly wearing a One Fair Wage apron to boost efforts for tipped employees to earn the city’s standard $15.80 minimum wage. One Fair Wage swooped in for a mid-August informational meeting to woo tipped employees. However, opponents have warned that eliminating tipped wages would cause restaurants to shutter, thereby harming businesses, workers, and Chicago itself.
A few more minimum wage odds and ends:
- Theme park and hotel workers could be boosted to $25 per hour (up from the current $16.90) in L.A. County if the Board Of Supervisors answers the call of UNITE HERE. That wage would rise to $30 per hour by 2028.
- Minneapolis app-based rideshare drivers could soon land their minimum wage based on mileage and time. The issue now sits with the city council.
Yes, Bernie Sanders is still dreaming: The Democratic socialist senator is pushing a $17 federal minimum wage for workers while citing inflation. This, of course, would be a massive leap from $7.25, which has been in effect since 2009.
