WorkforceOne Fair Wage said it will attempt to end the practice in 25 more states by 2026.
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A group dedicated to ending the tip credit said it is commencing a $25 million campaign to kill the employer concession in 25 states by 2026.
The group, One Fair Wage, did not say how the funding will be used. But it noted that a variety of initiatives are underway in a multitude of states and local jurisdictions to halt the practice, from a ballot initiative in Washington, D.C., to legislation banning the practice in New York. Saru Jayaraman, the Yale Law School graduate who serves as One Fair Wage’s president, noted during the event that New York and Illinois would be definite targets of the effort. She also mentioned California, but that state does not permit employers to take a tip credit.
Other speakers said they are part of tip-credit repeal efforts underway in Michigan. The roster of presenters included U.S. Rep. Pramila Jayapal, chairman of the Congressional Progressive Caucus, who indicated that she supports a measure to ban the tip credit on a national basis.
One Fair Wage has also used litigation to challenge use of the tip credit. It sued Darden Restaurants, parent of the Olive Garden and LongHorn Steakhouse chains, to halt the casual-dining giant’s use of the tip credit on the grounds that the practice is discriminatory. The group cited proprietary research that showed White servers tend to be tipped better than Black servers. The court dismissed...
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