Newswise — A report released today by the Center for State Policy Analysis (cSPA) at Tufts University's Jonathan M. Tisch College of Civic Life assesses the likely impact of Massachusetts Ballot Question 5, which would phase out the “tipped minimum wage.” Current rules allow restaurants to pay workers as little as $6.75 per hour, provided that tips cover the rest of the $15 per hour state minimum wage. If Question 5 passes, businesses will need to directly pay the full minimum wage for their tipped workers.

A separate provision of Question 5 would allow tips to be shared with cooks, accountants, and other non-management staff.

"Workers and restaurants will certainly feel the impact," said Evan Horowitz, executive director of cSPA. "But the changes should be modest. Tipped workers will earn slightly more, and businesses will respond with new service charges and somewhat higher prices."

Today’s report is the fifth and final in a series covering all state ballot questions.

Key findings of today’s report include:

• Eliminating the tipped minimum wage would likely increase earnings for waitstaff, bartenders, and other tipped workers.
• Covering the full minimum wage (before tips) will raise costs for tip-dependent businesses, who will compensate with a mix of higher prices, new service fees, reduced hiring, increased automation, and potentially lower profits.
• Allowing tips to be shared with kitchen staff could help equalize pay between front- and back-of-house workers. However,...

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