Minneapolis Restaurant Servers Want to be Exempted from Minimum Wage Hike

Without a “tip credit,” tipped employees could end up making less money if the current version of wage hike passes.




Tipped servers in Minneapolis earn an average of $28 an hour in wages and tips, but that number could go down with a raise in the minimum wage.

At least some restaurant servers in Minneapolis have taken a stand against raising the minimum wage without an exemption for themselves—because it would cut their income rather than raise it, according to the Star-Tribune.

About 50 restaurant employees rallied Tuesday near Minneapolis City Hall in favor of a “tip credit” as part of a proposed minimum wage hike to $15 an hour. A tip credit is an exemption, meaning the wage hike would not apply to servers who currently work for a lower hourly wage ($9.50 in Minnesota) plus tips. One coalition of Minneapolis restaurants has called for a phase-in of the wage hike with a credit for tipped employees, saying restaurants should make up the difference if employees’ earnings don’t add up to $15 an hour. But the Star-Tribune says “most members” of the City Council support a $15 minimum wage without a tip credit.

The problem is that tipped restaurant employees in Minneapolis make an average of $28 an hour in wages and tips, according to a March survey. “We’re not asking for more,” Smack Shack employee Michaelann Gillis told the Star-Tribune. “We’re asking for what we have.”

The wage hike would hurt restaurant owners, too, according to Heather Bray, who operates The Lowbrow in south Minneapolis. To pay all of her servers $15 an hour, she’d have to raise prices and, she said, “I fear that everything we worked so hard for will crumble.”

 

Edit Module

Tell us what you think at or email.

Edit Module
Edit ModuleShow Tags
Edit ModuleShow Tags

Related Articles

Zume Inc. Introduces Next Generation Delivery Vehicles

Zume partners with Welbilt to launch a second-generation of its patented, customized food delivery vehicles.

3 Pizzerias to Watch: Grandmas, Sour Beer and Expansion

A look at the pizzerias that have been catching our attention lately.

Marketing to Generation Z

4 ways Gen Z will impact the restaurant industry.

Domino's Deters Delivery Crime with Safety Hotline

Unified Office Safety and Security Hotline provides delivery driver safety features.

Pizzeria Owners Attend Barbara Bush's Private Funeral

After more than two decades as a customer, the former first lady requested the pizzeria owners' presence.

Study Finds Younger Consumers Crave Human Connection

Younger consumers use technology to enhance their social experiences when dining out, according to study.

Update Concerning Romaine Lettuce Scare

Leafy greens producers offer new information that can help restaurants and consumers purchase lettuce after E. coli outbreak.

USPT Member Takes Silver at World Pizza Championship in Parma

Scott Volpe of Fiamme Pizza in Tucson, Arizona, takes the silver medal in Freestyle Acrobatics at the championship event.

Celebrate Earth Day on April 22

Tips for celebrating the planet that gives back so much.

Feel the Power of the 4th: 5 Pizzeria Promotions for Star Wars Day

5 pizzeria promotions for Star Wars Day
Edit ModuleShow Tags
Edit ModuleShow Tags
Edit Module
Edit Module
Edit ModuleShow Tags
Edit ModuleShow Tags
Edit Module
Edit ModuleShow Tags
Edit ModuleShow Tags