This popular system is smart and efficient as it maximizes earnings for servers, allows restaurant operators to hire more employees, and fosters lower menu prices for customers.
Under the tipped income system, every tipped server is already making at least the minimum wage—often far more—with a portion paid by the restaurant owners and the rest made up by tips to equal the full state minimum wage.
The tip credit compensation model increases a server’s earning potential, which is why an overwhelming number of servers support the tip credit compensation model and don’t want to see it eliminated.
Watch our video showcasing how tipped income works, allowing restaurants to maintain competitive prices and servers to earn above-average wages through tips.
Under the tipped income system, every tipped server is already making at least the minimum wage—often far more—with a portion paid by the restaurant owners and the rest made up by tips to equal the full state minimum wage.
Now that you’ve learned about the value of the tipped income model, learn more about how the disruption of the system and the elimination of the tip credit is harming local restaurants across the country.
A survey of nearly 4,000 tipped restaurant workers in eight battleground states found 90% prefer the current setup to getting a higher wage.
The task of killing the tip credit may have just gotten harder in the eight states where labor advocates have been concentrating their efforts…
Servers, restaurant owners and other members of the state’s hospitality industry on Wednesday urged Illinois lawmakers to reject a proposal that would eliminate the separate, lower minimum wage for tipped workers.
A coalition of tipped workers, service operators, and local businessesurged the General Assembly to reject aproposal that would eliminate the tip credit.
HB5345 says on Jan. 1, 2025, an employer shall not be entitled to an allowance for gratuities…
Initiative 82 has forced many full-service operators cut back as costs rise.
There have been grumblings of jobs losses from Washington, D.C., restaurants in the wake of Initiative 82, which was approved in 2022 and went into place last spring….
The 12% reduction compares with layoffs of 1.7% for limited-service places, according to federal data.
Full-service restaurants in Washington, D.C., have cut 3,700 jobs—about 12% of their workforce—since the jurisdiction began rolling back its tip credit in May 2023…
Eating places are closing at the rate of one per week because of the one-two-three combination.
A triple whammy of inflation, vacated offices and crime is devastating the restaurant industry of Washington, D.C., with establishments closing at a rate of roughly one per week, according to new research…
