The regular minimum wage in Massachusetts is $15 per hour. Tipped workers like servers, bartenders and manicurists, however, have a much lower minimum wage—$6.75 an hour—because their pay consists mainly of tips.
The backers of Ballot Question 5, submitted by One Fair Wage, hope to change that. If passed, it would bring the tipped employee minimum wage up to $15. Employers could also pool employee tips to distribute them among their whole staff, not just front-of-house employees.
The new law would be phased in gradually by 2029.
Newton is home to hundreds of food establishments, each village with its own unique restaurants and bars.
There are 43 states, including Massachusetts, that have separate minimum wages for tipped employees.
Tufts did an analysis of Question 5 and its potential impacts on the state, on businesses and on tipped employees.
“There are certainly things to learn from states without a tipped wage, including that restaurant culture and tipping habits live on,” the Tufts report reads in part. “When you drive from Wisconsin (which has a tipped wage) to Minnesota (which does not) it’s hard to spot any big differences among restaurants. But it’s been decades since any state eliminated its tipped wage, so it’s harder to say exactly how the transition would go in a modern economy.”
There are around 70,000 servers and bartenders in Massachusetts, the report says, and 5,000 manicurists and pedicurists.
“As the tipped wage is phased out, income among tipped workers is likely to rise slightly,” the Tufts report continues. “The impact is not life-changing, in most cases, but nearly all studies find durably higher earnings.”
The bulk of those making more money would be women, Tufts concludes.
“On the other side of the ledger, businesses will see increased costs as they’re forced to cover the full minimum wage without help from customer tips,” the report continues.
Tufts suggests restaurant owners may have to take action to offset the new law, including hiring fewer workers and raising the price of goods and services.
The Charles River Regional Chamber, which has scores of restaurant and nail salon members, is opposed to Question 5.
“Restaurants are entrepreneurial businesses,” Chamber President Greg Reibman wrote in an Op-Ed recently. “They’re not a monolith. They have many different models. They span from fine dining to fast casual. They’re located in our most affluent communities and our poorest. Many struggle on thin margins. Many are still rebounding from the pandemic and burnout. And inflation has been brutal.”
Newton restaurant owners have spoken out about the proposal, too.
Seana Gaherin, who owns Dunn-Gaherin’s Food and Spirits in Upper Falls, told the Boston Business Journal in August that the law change could put her pub out of business.
But Kaitlyn Smith, who owns Thistle & Leek in Newton Centre, told WCVB last week (at the bottom of the page) that she supports the initiative because it would mean a pay increase for back-of-house employees.
Last week, the Chamber hosted a debate with the two candidates for the 11th Middlesex state representative seat—Democrat Amy Sangiolo and Republican Vladislav Yanovsky—focused on the economy.
Sangiolo said she supports Question 5 because, as a lawyer working in the Massachusetts Attorney General’s Office, she’s concerned about making sure employees are paid sufficiently.
Yanovsky opposes the ballot question and said he wants to eliminate all minimum wage for all employees.
The election is set for Nov. 5.
A “yes” vote on Question 5 changes state law to require a $15 minimum wage for tipped employees and to allow restaurant owners to pool employee tips.
A “no” vote keeps the tipped minimum at $6.75 and lets tipped employees continue to keep their tips.