Tipped Wage Phase-Out Heading to the Ballot

August 12, 2024

Tipped Wage Phase-Out Heading to the Ballot

Advocates attempting to phase-out the tipped wage for service workers were successful in bringing their question to the 2024 state ballot. Despite failed challenges to both the petition signatures and legality of the question, the voters will now decide the future of the tip credit for restaurant and service workers in Massachusetts. Question 5 will:

Raise the tipped wag to 64% of the state minimum wage by 1/1/25
To 73% by 1/1/26
To 82% by 1/1/27
To 91% by 1/1/28
And to 100% of the state minimum wage by 1/1/29
It also calls for tip pooling.

States that attempted to phase out the tipped wage experienced an increase in menu prices while servers saw a reduction in their tips. Maine had to reverse their tipped wage phase out through legislative action at the request of servers facing smaller paychecks. It’s also worth noting that proponents falsely paint a picture of a “sub minimum wage” in restaurants. It is unlawful for employers to pay less than the Massachusetts $15 minimum wage. If a server averages less than $15 per hour with tips included, the restaurant owner is required to pay the difference. In fact, Massachusetts modified this requirement to make it more stringent under the 2018 Grand Bargain mandating the “true-up” be calculated based on a worker’s shift, not pay period. For those looking to become more involved in this ballot question, please visit: Home | Protect Tips | Ballot Question. NFIB opposed phasing out the tipped wage and has voiced our concerns with previous legislative proposals. Continue watching your inboxes for additional information.

Topics:

Uncategorized

State:

Massachusetts

Get to know NFIB

NFIB is a member-driven organization advocating on behalf of small and independent businesses nationwide.

Learn More