Tension was in the air at a hearing in Rockville, Maryland, on doing away with the tipped wage credit and phasing in a minimum wage that matches the rest of Montgomery County among both sides of the debate.
As the Tuesday afternoon hearing started, Montgomery County Council President Evan Glass urged both sides to be “respectful,” adding that “we know there are a lot of emotions, and a lot of concerns” on both sides of the debate.
The legislation, Bill 35-23, County Minimum Wage — Tipped Workers, would raise the minimum wage for tipped workers from the current $4 an hour rate with a $2 an hour increase by July 2024. The hourly wage would continue to increase until it matches the county’s own minimum wage, which currently ranges from $14.50 to $16.70 an hour, depending on the number of employees in the workplace.
Council members Will Jawando and Kristin Mink have championed the bill, arguing it would raise the floor for workers.
Maryland Del. Gabriel Acevero testified in favor of the change, saying that restaurant workers were especially vulnerable to trends in the local economy, and coming out of the pandemic, “not only were they not making enough hours, but they weren’t making enough in order to make ends meet.”
Tommy Evans, founder of Two Story Chimney Ciderworks in Damascus, told the council the change would put his business at risk. “Ultimately, it would drive my customers away, it would drive my employees away,” and it would leave the future of his business “much more in the air than it is now.”
Ed Fischman downplayed the opposition to the bill from business owners.
“We always get opposition from businesses that say this is going to drive us out, and it’s never true, they always adapt,” he said.
Alex McCrimmon, a county resident who has worked as a manager and a server in multiple restaurants, said eliminating the tipped credit would mean slashing his earnings.
“Yesterday, I made $300 on my shift. If I was making minimum wage, I would have made $133 before taxes. Who would want to take that kind of pay cut?” he asked the council.
Ifeoma Ezimako, who said she’s worked in the restaurant business, backs the bill that would raise the minimum wage, arguing that “nobody can budget to feed their families based just off of tips.” She insisted that boosting the minimum wage would not necessarily mean customers would stop tipping altogether.
D.C.’s elimination of the tipped wage credit was cited numerous times during the testimony before members of the council, with opponents arguing that the change resulted in surcharges to restaurant bills that hurt business.
The Prince George’s County Council tabled a similar bill last week.
