Don’t fix it if it isn’t broken.

It’s election season! Early voting has begun, campaign commercials are airing, and it’s time to take a look at the five questions that we will be voting on this election. One question that keeps coming up in our Instagram feed is Question 5. It seems like most neighborhood restaurants, local servers, elected politicians, and Governor Maura Healey will be Voting No on 5.   We’ve got the breakdown for you! 

So what is Question 5?

Question 5 is a ballot measure that would gradually increase the wage of tipped employees until it meets the state minimum wage in 2029, which is $15 an hour. It would still permit tipping in addition to the minimum wage.  The measure is sponsored by the national advocacy group from California, One Fair Wage. 

Those against Question 5 want things to stay exactly how they are with a lower wage and current tipping practices in place.  The Massachusetts Restaurant Association is behind the Committee to Protect Tips, a coalition registered in opposition to Question 5. 

Here are a few myths that the Committee to Protect Tips would like to clarify:

MYTH:

There is a sub-minimum wage in Massachusetts.

FACT:

EVERY worker in Massachusetts is already guaranteed to earn at least the current minimum wage of $15 including tipped employees. If, after wages and tips, an employee does not earn $15 per hour, the employer must pay the difference. In fact, when Congress codified the tip credit in 1966, the Congressional research service explained that the law does not mean that a tipped worker may earn a subminimum wage; rather the tip credit provisions change the composition of a worker’s earnings. Furthermore, the restaurant owner must pay all the contributory taxes, FICA, FUTA, and SUTA on both the tipped wage paid and the tips received from patrons.

MYTH:

Tips are better in states without a tip credit.

FACT:

The Census Bureau has reported that “tips per hour appear to decrease in response to higher tipped minimum wages.” Additionally, Cornell University has released a study that found states with higher tipped minimum wages see lower average tip percentages in restaurants.

MYTH:

There is a sub-minimum wage in Massachusetts.

FACT:

EVERY worker in Massachusetts is already guaranteed to earn at least the current minimum wage of $15, including tipped employees. If, after wages and tips, an employee does not earn $15 per hour, the employer must pay the difference. In fact, when Congress codified the tip credit in 1966, the Congressional research service explained that the law does not mean that a tipped worker may earn a subminimum wage; rather the tip credit provisions change the composition of a worker’s earnings. Furthermore, the restaurant owner must pay all the contributory taxes, FICA, FUTA, and SUTA on both the tipped wage paid and the tips received from patrons.

According to the Committee to Protect Tips, tipped employees overwhelmingly are saying no to Question 5.  The results from the Massachusetts Restaurant Association survey indicated:

1. 86% think the current tipping system works for them.
2. 90% believe that if tipped wages are eliminated, tipped employees will earn less.
3. 88% oppose a mandatory tip pool where tips are shared with the kitchen and other non-service staff.
4. 91% say they prefer the current system, with a lower base wage and tips that provide the ability to earn more than the minimum wage.
5. 56% of respondents report earning more than $30.00/per hour.

You can read the full report here. 

On Monday, councilors John FitzGerald, Ed Flynn and Erin Murphy showed their support for the local restaurant industry in support of No on 5 at J.J. Foley’s Cafe in the South End. 

From the Boston Herald:

“This isn’t a bipartisan issue,” FitzGerald said. “This is a math issue, and the math is this will be better for the workers that are collecting tips, this will be better for the consumer. We’re used to what this is, and there’s no use in changing something that isn’t broken.”

At this week’s City Council Meeting, Flynn will file a resolution in opposition of Question 5. 

“As our restaurants throughout Boston continue to recover from the post-pandemic inflation, remote work policies, and continued uncertainty in the economy- we should not be adding costs to our local small businesses and their customers,” said Councilor Flynn. “After speaking with my neighbors and constituents in the industry, I believe that this ballot question proposed by outside interest groups could once again put unnecessary pressure on local establishments to lay off staff and potentially threaten their survival. We must support our local restaurants, the backbone of our economy, and oppose Question 5.”

If you would like to learn more about No on Question 5, visit here. 

Check out our Guide to Election Day here. And remember to vote—it’s important! 

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