A controversial bill that would have raised the base minimum wage for tipped workers in Montgomery County was withdrawn by its lead sponsor councilmember Will Jawando (D-At-large) on Tuesday, but similar efforts are still underway in the Maryland General Assembly.
“The action to withdraw the bills is in coordination with other regional partners who are advancing similar measures to focus on state policy to support tipped employees,” Jawando said in a statement from his office. “Advocates are hopeful that the Governor and General Assembly will take decisive action on this critical issue and champion the cause of economic fairness in our state.”
The One Fair Wage Act of 2024 is being introduced in the Maryland General Assembly with a House bill sponsored by Del. Adrian Boafo (D-Dist. 23) and Del. Veronica Turner (D-Dist. 26), who both represent Prince George’s County, and a Senate bill sponsored by Sen. Arthur Ellis (D-Dist. 28), who represents Charles County, and Sen. Cory McCray (D-Dist. 45), who represents the city of Baltimore. If passed, this legislation would similarly raise the base minimum wage for tipped workers across the state.
In 2023, when the bill was introduced, servers and other workers who relied on tips were required by county law to be paid $4 per hour before tips. The county’s minimum wage for non-tipped workers was $16.70 for employers with 51 or more employees, $15 for employers with 50 or fewer employees and $14.50 for employers with 10 or fewer employees. In neighboring Prince George’s, the base minimum wage before tips was $3.63 in 2023. In October, the Prince George’s County Council opted to table a similar piece of legislation.
Jawando’s bill, which was co-sponsored by councilmember Kristin Mink (D-Dist. 5), would have increased the base minimum wage at a staggered rate–going up to $6 in July 2024, $8 in July 2025, and so on in increasing increments of $2 until reaching the same rate as the standard minimum wage, according to a chart provided by a council staff member.
The legislation was similar to Initiative 82, which passed in Washington, D.C., last year, eliminating the tipped minimum wage. In D.C., the $5.35 minimum was first increased to $6 in May, and then jumped again to $8 in July. This led many restaurants to add service charges, according to Axios.
The Restaurant Association of Maryland (RAM), which vocally opposed the legislation, applauded the withdrawal in a statement.
“Restaurant server and bartender earnings would significantly decrease if the tip credit were eliminated because full-service restaurants would be forced to impose service charges on customer checks to cover the substantially higher labor costs,” Melvin Thompson, RAM’s senior vice president of government affairs, wrote. “Customers are unlikely to tip on top of service charges. And there would be no incentive for servers to provide the best possible customer service if they were no longer rewarded with tips.”
One Fair Wage, a national organization that supported Jawando’s bill, said they will focus on supporting the state legislation.
“Given that the Maryland General Assembly is in session for only a few months, we’re focusing our resources and advocacy efforts on passing comprehensive statewide legislation to end the subminimum wage for tipped workers in all 23 counties across the state,” One Fair Wage spokesperson Angelo Greco wrote in an email to MoCo360 Tuesday. “The strong base of support we’ve built in Montgomery and Prince George’s County will be critical to this effort.”
At a public hearing at a county council meeting in October, speakers were deeply divided on the legislation. Some community members said raising the base minimum wage would allow for greater financial security for tipped workers.
“As a tipped worker, whether or not you can pay your rent should not be dictated on the kindness of customers,” said Jibran Eubanks, an organizer with the 1199SEIU union.
But others, including several waiters from local restaurants, said they were concerned raising the base wage would discourage clients from tipping, and overall cut into their earnings.
“I’ve always had enough money to support myself with tips, whether working full time or part time,” said Elena James, a server at Silver Diner in Rockville. “By eliminating the tip credit and paying us the minimum wage it will significantly decrease our earning potential and cripple our ability to maintain our livelihoods.”
