#Highroadrestaurants#Onefairwage Oct 02, 2023

In my recent testimony before the Massachusetts Joint Committee on Labor and Workforce Development, I passionately advocated for eliminating the sub-minimum wage for tipped workers. This call to action resonates in various states, posing a crucial question to restaurant operators nationwide: Are you prepared for the imminent change?

Unveiling the Roots: The Origin of Sub-minimum Wage

The sub-minimum wage for tipped workers finds its origins in post-slavery America. This archaic system disproportionately affects women, especially women of color, leading to elevated poverty rates and increased instances of sexual harassment (OFW Fact Sheet Chicago).

A Nationwide Movement: Momentum Towards One Fair Wage

The movement towards establishing one fair wage gains momentum, even reaching the birthplace of the tipped minimum wage – Chicago. Proposals to abolish this practice progress through city committees, prompting a new era where restaurants may need to adjust hourly rates from $9/hour to $15.80/hour, marking a significant shift.

Step by Step: Incremental Wage Increases Across States

Incremental wage increases have been the norm, with California’s phased approach serving as a model for employers to gradually adapt to new wage standards (Read more).

California’s Paradox: Success Without Tipped Minimum Wage

Surprisingly, California stands as a testament to success without a tipped minimum wage. The state’s thriving restaurant industry, without this practice, challenges preconceived notions about the viability of such establishments.

Navigating Challenges: A Closer Look at Restaurant Owners’ Dilemmas

Challenges faced by a local restaurant owner in New Hampshire, contemplating the transition to one fair wage, include increased taxes, higher worker’s comp premiums, and concerns about pay equity. These factors present formidable obstacles, reflecting the complexities involved.

Turning Challenges into Opportunities: A Blueprint for Restaurant Entrepreneurs

In my capacity as a former controller for restaurants in San Francisco, a notoriously challenging market, this transition becomes an opportunity for entrepreneurs. It urges them to reevaluate values paramount to their establishments and prioritize business strategies. A profit and loss statement becomes a blueprint, outlining the values underpinning their businesses.

Impact on Labor Costs and Local Communities: A Positive Ripple Effect

As the industry navigates this transformative period, restructuring labor costs to truly value the workforce can have a positive ripple effect. Paying one fair wage and adopting a policy of pooling tips with the entire team sends a powerful message – a commitment to equity and fairness. In most states, tipping out all workers is legally permissible if one fair wage is maintained.

Guiding the Transition: High Road Restaurants Takes the Lead

In my new role with High Road Restaurants, I am at the forefront of guiding restaurant operators through this intricate transition. The mission is clear – support them in becoming vocal advocates for change and encourage others to follow suit.

Closing the Chapter: A Call to Uphold Ethical Standards

As we navigate this shift, it’s essential to recognize that while the transition may seem daunting, paying one fair wage aligns with ethical considerations. This transition has the potential not only to redefine the industry’s standards but also to have a positive and lasting impact. Let’s strive to do the right thing, echoing the timeless words of Hillel the Elder: “If not us, who? If not now, when?”

© 2023 Kajabi