President, Some Democrats Look to Raise Minimum Tip Wage
President Obama and a group of senators are proposing to raise the overall minimum wage to
$10.10 an hour, while also backing an increase of the tip wage. In particular,
Iowa Sen. Tom Harkin (D) and Illinois Sen. Dick Durbin (D) are pushing for a
tip minimum wage increase to about $7 an hour. Restaurant owners are strongly
opposed – they argue that it would mean higher prices for customers and fewer
waiters serving them. In addition, some restaurant owners argue that the
increase could make the difference between staying open and closing. The
federal government sets a lower minimum wage for restaurant workers who make a
significant portion of their income in tips.
Currently, the tipped minimum wage is $2.13 per hour.
The President and Senate Democrats
strongly support the measure, but would
need several Senate Republicans to cross over and vote with them for the measure
to pass. The GOP-controlled House has not signaled a willingness to bring up
The New York Times runs a good overview piece on
the debate, while WICS-TV interviews the owner of Ray’s Route 66
Family Diner in Illinois, who says she fears she would have to close her
business if Sen. Durbin’s bill is enacted.
This news article is intended to keep small business
owners apprised of current events that may affect them. It does not necessarily
reflect NFIB’s policy position on such issues.