Despite all headlines and conversations coming out of Harrisburg focused on the minimum wage, there’s another conversation happening that will impact tens of thousands of Pennsylvanians. And other than to those paying very close attention to legislative filings, it’s mostly flying under the radar. The tipped wage is under threat.
In 2021, the Pennsylvania Department of Labor and Industry estimated there were 199,285 tipped workers in Pennsylvania, as defined by regulations at the time. This number included workers who earn a base wage of $7.25 per hour and those with employers that take the tip credit and pay $2.83 per hour.
Countless hospitality employees depend on the opportunity and flexibility of earning a tipped wage. The tipped wage structure empowers many to earn far beyond their expected income and provides flexibility unmatched by any other industry. It’s not just a win for employees but also for small business owners and restaurant employers. Thousands of restaurateurs depend on the proper use of the tip credit to manage costs, foster growth, and maintain a sustainable business model. Any changes to the tipped wage would impact all of hospitality.
Saving the tip credit and preserving the tipped wage ought to be a bipartisan issue. Employees have seen the consequences of changes to the tipped wage — reduced tips, decreased earnings, and a threat to flexibility, the reason so many choose hospitality. Increases to the tipped wage would significantly impact...
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