It has been about a year since Washington, D.C. voters passed a phase-out of the tip credit and subminimum wage.
Local leaders and advocates from Montgomery County are still working toward making the change here, and Councilmember Will Jawando held a discussion with One Fair Wage and Chicago City councilmembers on Wednesday about their efforts. In October, the Chicago City Council passed similar legislation.
Advocates cited a recently-released report marking the one-year anniversary of the passage in D.C.
The county council’s bill — introduced by Jawando and co-sponsored by Councilmember Kristin Mink — would phase out the tip credit by 2028 and increase pay for tipped workers each year until reaching minimum wage. According to council documents, the tip credit represents the amount of the minimum wage an employee is expected to make in tips. The current credit is the hourly minimum wage minus $4.
The bill is headed to committee in January before potentially going to full council, and leaders hope similar legislation will pass at the state level during next year’s general assembly session.
But, not all are in favor of getting rid of the tip credit. Restaurant servers and bartenders have voiced their opposition to proposals that would eliminate the credit. The Restaurant Association of Maryland states that getting rid of the tip credit will lead to higher menu prices and service charges, and that customers will not tip on top of that.
Jawando said Wednesday that is a “scare tactic” that is not supported by data.
