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Senate File 504* would increase the “employer paid wage” of Tipped Employees

by an additional $3.30 an hour to a minimum of $10.55 per hour.


From the bill (Senate File #504):

(1)     every large employer must pay each employee wages at a rate of at least:

1.22  (i) $8.35 per hour beginning August 1, 2013;

1.23  (ii) $9.45 per hour beginning August 1, 2014;

1.24  (iii) $10.55 per hour beginning August 1, 2015


This legislation (without a Tip Credit amendment) would primarily only increase the wages of the highest paid

hourly employees (the tipped employees), as only tipped employees in full service restaurants are paid minimum

wage per hour.  In the full service restaurant business non-tipped employees are already paid more than

minimum wage, so minimum wage legislation will not impact most of the lower earning non-tipped employees.


This is one of the primary injustices of increasing minimum wage without allowing a “tip credit,” because in the full service restaurant

industry minimum wage legislation almost always only insures an increase in hourly wages to the highest earning hourly employees and

does not help the lower earning non-tipped employees (line cooks, prep cooks, pantry persons, dishwashers, greeters, bus persons).  


To more fully understand this point, please see also NO TIP CREDIT HURTS THE LOWEST PAID WORKERS .

*The House companion bill is House File 599.