by Stephen D. Hans | Dec 26, 2017 | minimum wage, Restaurant Industry Tip Sharing
Most people assume that restaurant workers would be thrilled about a raise in the minimum wage, but that restaurant owners would not be in favor of it. An interesting situation took place in Maine last summer that is worthy of note regarding minimum wages. According to The Washington Post , the Maine House voted to lower minimum wages for tipped restaurant workers based on the workers’ request. The bill to reduce their minimum wages passed and restaurant workers were happy about it. Restaurant servers in Maine had campaigned to overturn the results of a November referendum that would’ve raised servers’ hourly wages from $3.75 in 2016 to $12 by 2024. They believed that such a raise would result in customers tipping less and consequently lower overall income. In addition, servers in New York, Massachusetts and D.C. were also beginning to move politically against minimum wage increases for servers in their states. The Explanation Behind Wanting a Low Minimum Wage Restaurant labor models differ from most industries. When tipped workers’ wages fall below the minimum wage, the employer must pay the difference. However, whether restaurants actually adhere that requirement or not is rather uncertain. Servers who make most of their income in tips do not want to upset management or change what is working well for them. Some servers believed that the added expenses of higher minimum wages for restaurant owners would result in raising prices and cutting work shifts, which would ultimately result in people tipping less, servers working less and lower incomes. Some workers stated that they witnessed customers tipping less after the referendum passed. It’s also possible...
by Stephen D. Hans | Apr 8, 2016 | minimum wage, Wage and Hour
Bill signed for Minimum Wage Hikes in New York As far as increasing the minimum wage to $15 an hour, New York State and California are in lockstep. Both governors signed bills on April 4. 2016. New York’s bill is very detailed and the following are some the ways minimum wage increases are to be implemented. Large Businesses (11 employees or more) Minimum wages increase to $11 by the end of 2016 Minimum wages increase by $2.00 each year after Minimum wages reach $15 by 12/31/2018 Small Businesses (10 employees or fewer) Minimum wages increase to $10.50 by the end of 2016 Minimum wages increase by $1.50 each year after Minimum wages reach $15 by 12/31/2019 Nassau, Suffolk and Westchester Counties businesses Minimum wages increase to $10 by the end of 2016 Minimum wages increase by $1.50 each year after Minimum wages reach $15 by 12/31/2021 The rest of NY State businesses Minimum wages increase to $9.70 by the end of 2016 Minimum wages increase $.70 each year after Minimum wages reach $12.50 by 12/31/2020 The Director of the Division of Budget in collaboration with the DOL will decide on further increases to reach $15 an hour Analysis and Review The bill also has a built in safety net for increases. In 2019, the state DOB Director is to analyze the effect of minimum wages on each economy region. Based on findings, the Director has the power to suspend minimum wage increases, if necessary. Source: New York State website Of course, complying with minimum wage changes has...
