This spring, several states saw bills and ballot measures to raise their minimum wages or eliminate their tip credits for tipped restaurant employees. EPI has been active at the state and local level warning against the adverse consequences of these measures, particularly for affected employees who may lose their jobs, see reduced hours, or lose earnings.
As the majority of state legislative sessions come to a close, here’s a status update on various proposals around the country.
- Alaska: A ballot measure to raise the minimum wage statewide up to $15 per hour, and create mandated paid sick leave is qualified to appear on the November election ballot.
- Arizona: A proposed ballot measure to raise the state’s minimum wage to $18 per hour and eliminate the state’s tip credit is currently gathering signatures to qualify for November’s ballot. Concurrently, the state House recently passed the Tipped Worker Protection Act, a proposed constitutional amendment to lock the tip credit at 25% of the regular minimum wage rate. This amendment must be passed by the Senate before it can appear before voters on the November ballot.
- California: A ballot measure proposing to raise the state’s minimum wage to $18 per hour is currently certified for the ballot in November. Earlier this year in April, a $20 fast food industry minimum wage went into effect. This past week, lawmakers voted to delay a previously-enacted $25 minimum wage for health care facility employees until July 1. Various cities and counties in California are also slated to raise their minimum wages on July 1.
- Connecticut: A proposed bill to eliminate the tip credit statewide has died after it received significant pushback from local restaurant owners and tipped employees. The bill passed the House Labor and Public Employees Committee but failed to get a full House or Senate vote before the end of the legislative session on May 8.
- Illinois: A proposed bill to eliminate the tip credit statewide has apparently stalled. The House Labor Committee initially passed the bill despite a bipartisan group of legislators expressing concerns over the impact of the bill. Ultimately, the bill failed to gain a full House vote and died with the end of the legislative session on May 24.
- Maryland: A proposed bill to eliminate the tip credit statewide died in the Senate Finance Committee following significant pushback from tipped restaurant employees and local operators. The bill never received a vote before the end of the legislative session on May 8.
- Massachusetts: A proposed ballot measure to eliminate the state’s tip credit is currently active in Massachusetts. The legislature declined to adopt the measure outright, following concerns from local tipped employees and operators. Now the measure is currently gathering signatures to certify for the ballot in November.
- Michigan: A proposed ballot measure to raise the state’s minimum wage to $15 per hour and eliminate the tip credit statewide has been blocked by the state Supreme Court. After the Board of Canvassers deadlocked on whether or not to certify the measure due to a discrepancy in the description of the measure, the Michigan Supreme Court voted 7-0 declining to force election officials to certify the measure. A different ballot measure proposing a $15 minimum wage and tip credit elimination regarding the legislature’s action to amend the passed measure in 2018 is still currently under review by the Supreme Court.
- Ohio: A proposed ballot measure to raise the state’s minimum wage to $15 per hour and eliminate the state’s tip credit is currently gathering signatures to qualify for the November ballot. Recently, state Sen. Bill Blessing introduced legislation to raise the state’s minimum wage up to $15, but preserve the state’s existing tip credit which is 50% of the regular minimum wage rate.
- Oklahoma: A proposed ballot measure to raise the state’s minimum wage to $15 per hour is currently gathering signatures in Oklahoma. The measure would not change the tipped minimum wage for tipped restaurant employees. This week, the Oklahoma legislature passed a bill that would increase the time frame allowing challenges to proposed ballot measures following the signature collection phase, which could limit the measure’s likelihood of qualifying for the ballot in November.
- Pennsylvania: Gov. Josh Shapiro has doubled down on support for passing a $15 minimum wage bill with a $9 tipped minimum wage, as approved by the state House last year. It has not yet received additional votes this spring. State Sen. Christine Tartaglione recently introduced legislation to raise the state’s minimum wage to $20 per hour with a tipped minimum wage set at 70% of the regular rate.
- Rhode Island: A proposed bill to eliminate the state’s tip credit was tabled by the House Labor Committee in its first hearing, following pushback from tipped employees and local operators.