ST. PAUL, Minn. (WCCO) — People who work in the restaurant industry met Sunday to talk about what raising the minimum wage means to tipped workers.
A handful of concerned people gathered in St. Paul. The city’s mayor, Melvin Carter, has said it’s a priority to work with the city council to pass a $15 an hour minimum wage.
The organizer believes raising the minimum wage, without adding what’s called a tip credit, could hurt the bottom line for businesses and employees.
“What that tip credit is a dollar amount in between that would allow us to count our taxable tipped income towards the minimum wage. The tip credit still guarantees that all workers make minimum wage at all times, but we’re allowed to use tips toward that minimum wage,” Jennifer Schellenberg, the event organizer with the Restaurant Workers of America, said. “The reason we want to do that is to keep menu prices lower for guests and continue participating the tip culture.”
A server at the meeting said many tipped workers make more than $15 an hour. He says a wage increase is good for many industries, but not his.
“It will definitely affect the amount of income and, really the ceiling. I think that it will lower the ceiling for my potential income,” Matt Gray said.
The City of Minneapolis passed a new minimum wage ordinance without a tip credit. Those working in bars and restaurants will make tips on top of the $10 an hour wage. It will eventually increase to $15 per hour by the year 2022.