Washington, D.C

Opinion | Think carefully before changing tipped-wage laws

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Regarding the Feb. 15 Metro article “Tipped wage may go to voters”:

As the owner of restaurants in D.C. and Maryland, I suggest Maryland residents do their homework before eliminating the tipped minimum wage, as D.C. has begun to do.

First, do a study of how much tipped employees earn and why these employees choose tipped employment over hourly-wage employment. Tipped employees in my restaurants earn between $35 and $40 per hour. Tipped workers typically make far more than cooks or dishwashers in most full-service restaurants.

Second, do a study of how much restaurants really earn. It is a lot less than you think. It is why they are constantly going out of business. Few industries have the failure rate that full-service restaurants have.

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Third, determine who will likely pay for the massive payroll increase caused by eliminating the tipped minimum wage. It will be the guests in the form of service charges and higher menu prices. Restaurants’ bottom lines cannot absorb the increase in payroll.

Fourth, find a constituency that will be happy about this change. In D.C., guests are confused by service charges or increased prices. Restaurant owners struggle to manage a dwindling bottom line. Tipped employees are not making more money. Of course, the D.C. Office of Tax and Revenue is happy. It is collecting extra sales tax on all the service charges.

D.C. voters were given a choice on a ballot initiative to save or eliminate the tipped minimum wage. More than 75 percent voted to eliminate it without fully understanding it. Will Maryland follow suit, or will the voters do their homework?

Geoffrey Tracy, Washington

The writer is owner of Chef Geoff’s and Lia’s restaurants.

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