After several failed attempts in the Legislature, out-of-state advocates are trying to phase out the tipped wage for the Massachusetts hospitality industry through the ballot box this election cycle. This costly proposal will reduce the take-home pay for hospitality workers such as servers, drive up operating costs for owners, and result in higher prices for consumers.
On September 20th, NFIB Massachusetts and the Committee to Protect Tips held an informational virtual event explaining why this proposal threatens the very people it purports to help and informing members about the current efforts and resources available to business owners to combat this job-killing proposal.
Proponents of eliminating the tipped wage tout their past victories, but the phase out has already proven to be disastrous in those regions. Washington, DC experienced 3,700 full-service restaurant jobs cut one year after the implementation of their changes to the tipped wage due to restaurant closures, cutbacks, and relocations. Other restaurant operators pivoted from full-service models to fast casual dining. In Maine, servers campaigned to reverse the results of a referendum phasing out the tipped wage because the end result was a reduction in their take-home pay.
Even if you are not in the restaurant industry, keep in mind the tip sharing component will impact other types of businesses like hotels or resorts, barbershops or salons, and much more. This ballot initiative will have a ripple effect throughout the Massachusetts economy, negatively impacting food providers, delivery drivers, cleaners, tourism, and anyone associated with hospitality.
If you have any questions about this event or any other issue, please reach out to NFIB Grassroots Manager julianna.rauf@nfib.org, 857-228-9978.