Save Our Tips Maryland
The Raise the Wage Act takes away your Tips!
Congress wants to increase the minimum wage and eliminate the Tip Credit in their Raise the Wage Act. Eliminating the Tip Credit means that tipped employees will no longer earn tips and be paid a flat hourly wage instead. Tipped employees fought this battle in Maryland in 2018 and won the right to keep their tips – now we must take action again!
Click the buttons below to send an email to Congress and tell them to Keep the Tip Credit.
Tip Credit: Fact vs. Fiction
Myth: Tipped employees make less than minimum wage and eliminating the tip credit will fix that.
Fact: ALL tipped employees are guaranteed BY LAW to make at least minimum wage.
If an employee’s hourly wage plus tips does not equal at least minimum wage, then the EMPLOYER must make up the difference to bring them up to minimum wage. The idea that servers only make $3.63 an hour is utterly false. Servers and bartenders average at least $25 an hour, and in many restaurants earn significantly more. Eliminating the tip credit will force employers to pay everyone minimum wage with no tips – which means tipped employee will make LESS money than they do now.
Myth: Employers are taking advantage of tipped employees and do not make up the difference.
Fact: By law, employers must make up any shortfalls in tips to ensure that everyone makes at least minimum wage. Any employer that does not do so is breaking the law and should be held accountable.
In 2018 the state of Maryland, with the support of the Restaurant Association of Maryland, passed the paycheck transparency act which requires employers to document on an employee’s paystub their hourly rate. This ensures that tipped employees can see on every paycheck exactly how much per hour they earned. This documentation proves that tipped employees are making at least minimum wage.
Myth: Tipped employees want to eliminate the tip credit because they will make more money.
Fact: This is absolutely not true and tipped employees will make less money without the tip credit. Tipped employees know that they have the potential to make significantly more than minimum wage because of the tipping system.
Tips allow employees to earn more than minimum wage and keeps menu prices affordable which results in more customers and more income for all employees. Over the past five years tipped employees in our region fought against the elimination of the tip credit in Maryland, Washington DC and Virginia. These employees convinced lawmakers to Save their Tips and reject the elimination of the tip credit.
Mission: We promote, protect and improve the foodservice & hospitality industry in Maryland
Restaurant Association of Maryland & Restaurant Association of Maryland Education Foundation
6301 Hillside Court - Columbia, MD 21046 Phone: (410) 290-6800
Office Hours: Monday - Friday
9:00am - 5:00pm
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