One Fair Wage set out across the country this year to try to eliminate state and local tip credits in Arizona, Connecticut, Illinois, Maryland, Massachusetts, New York, Ohio, and Rhode Island.
The group’s only measure to survive the legislative and ballot initiative process was Question 5 in Massachusetts, which aims to eliminate the Bay State’s tip credit and raise the tipped minimum wage from $6.75 per hour up to $15 – a 122% hike.
Yet even in Massachusetts, workers, operators, and lawmakers have been vocal about their opposition to the measure.
Here’s what many around Massachusetts had to say about the measure:
Employees
- “We’re not working for minimum wage. We’re working for our $40 an-hour wage that we make engaging with our customers.” – Lisa Roberts, Cheers Boston bartender
- “I don’t want to lose my job. We make more than $15 an hour. I don’t know why they want to do this to us.” – Julie Dobson, Sullivan’s of Castle Island bartender
- “Because of the ability to make the excess dollars in tips, it funds my whole life. I live solo in Union Square. It allows me to take my vacation. It allows me to go see my family. Having the flexibility with scheduling and the excess money, you’re able to do that kind of thing — take off when you need to.” – Kevin McNally, Trina’s Starlite Lounge bartender
- “If this does pass, I don’t think people understand the consequences moving forward…People will lose their jobs because restaurants will be going over budget.” – Ryan Miller, Cheers Boston bartender
- “I think this system works for a large majority of us…For now, it’s not broke. There’s no reason to fix it.” – Brian Black, Rock & Rye American Bar bartender, on saying he averages $28-30 per hour on the current tip credit system
- “I fear that it’ll increase prices to a point where not as many people may go out to enjoy the dining experience. And I anticipate many smaller businesses or restaurants closing.” – Colton Sousa, The Black Whale and Cisco Kitchen + Bar staffer
- “The majority of small businesses and experiences for the consumer on a day-to-day basis would be hindered. The way that things are now has been able to allow me to both make a living and achieve my goals in the long run.” – Colton Sousa, The Black Whale and Cisco Kitchen + Bar staffer
- “In my immediate life and periphery, over 50 people in the service industry…there is not a single one of them that wants a yes vote.” – Kendra White, Friendly Toast server
- “If you’re paying $40 for a meal, it’s hard to ask for another $8 on top of that, as opposed to if you were paying $25 for it a couple months ago.” – Sean Gallagher, Harvard University student and server
Operators
- “By law, if they don’t make $15 an hour by their tip credit and hourly wage, we have to put in the difference and we’ve never had to. In the 22 years in business, we’ve never had to.” – Ralph Santaniello, The Federal Restaurant Group operator
- “People like dishwashers and barracks. I’m concerned for their jobs. We’re going to have to cut some of the jobs.” – Ana Sortun, Oleana chef and owner
- “We use about 50,000 tipped hours per year per restaurant. If tipped wages go from $6.75 to $15, and maybe more, that’s $400,000 a year in cost to each of our restaurants. Where will that money come from?” – Stephen Silverstein, owner of The Black Whale and other New Bedford restaurants
- “Many restaurants will close. We will be left with nothing but fast food and fine dining with nothing in the middle. Affordable restaurants will disappear…Menu prices will go up dramatically. When this is fully implemented, if it were to pass, menu prices will go up 25 to 30 percent everywhere.” – Doug Bacon, founder of Red Paint Hospitality Group
- “I consider this the greatest existential threat to our industry since COVID decimated us a few years back…A lot of places will not survive this.” – Neil Levine, owner of Maguire’s Bar & Grille
Even Massachusetts Governor Maura Healey, longtime server herself, came out against the measure.
“I think it’s important to vote no on this because I think you run the risk of closing restaurants and putting these workers out of work, actually, because the restaurant owners I speak [to] are not going to be able to afford this and they’re going to end up laying off people…In some instances, some have told me they’re just going to shut down.” – Interview with Boston Public Radio, October 16
She even mentioned as the state attorney general, she supports efforts to boost workplace protections and wages – but eliminating the tip credit “actually harms that effort.”
This outcry in opposition just days before the election follows a Massachusetts Restaurant Association survey of over 350 local tipped employees that found 91% prefer the state’s current tip credit system, over a flat minimum wage alternative.
Voters should beware of unintended consequences tip credit elimination could have on Massachusetts’ restaurant industry.