NFIB/MD testified against bill that worried many small business owners.
A Maryland Senate proposal that would have repealed the state’s tip credit, hurting small family diners, restaurants and other Main Street businesses in the service industry that employ tipped workers, is dead.
SB 659 would have repealed the authority of an employer to include an amount that represents the tips as a part of an employee’s wage. That would have repealed the current $3.63 tipped wage and would force all Maryland employers to pay the minimum wage of $8 to all employees who earn tips.
The Senate Finance Committee heard the bill on March 19, voting“Unfavorable Report” on the Repeal Tip Credit legislation. There is no House version of the bill.
Seven states require employers to pay workers the full state minimum wage before tips: Alaska, California, Minnesota, Montana, Nevada, Oregon, and Washington, according to the Department of Legislative Services fiscal and police note. In 17 states, employers may pay workers the federal tipped minimum wage of $2.13 per hour. In Maryland and 25 other states, employers can use a so-called “tip credit,” meaning they can pay tipped employees a minimum wage rate that is higher than the federal tipped minimum wage of $2.13 per hour, but lower than the state’s minimum wage.
Thank you to all NFIB/Maryland members who
contacted their Senators on this issue. Your voice was heard!
