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Bill to increase minimum wage, end tax on tips leads to major debate

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ANNAPOLIS, MD — A controversial bill aims to overhaul how tipped workers are paid and taxed in Maryland and increase the minimum wage by five dollars, to $20 an hour.

The groups for and against this bill have been going at it for years.

"What we all know would be simpler, cleaner, better, more effective, and just is a full minimum wage with tips on top," said Saru Jayraman, who leads One Fair Wage.

"How can my boss afford to pay 15 people minimum wage without adding a service charge but adding a service charge to the bill? It only goes to the business; it doesn't go to the server, so basically you'll be working for a check," said Julius Middleton.

The bill changes the wage for tipped workers to minimum wage plus tips; currently it's 3.63 with tips.

It also removes the tax on tips.

One Fair Wage, the group for the increase, says the other side is paid to come down here.

"All of the workers you've seen have come from the same four restaurants in every hearing for the last 3 years. It is because in those restaurants franchise operators hold captive audience meeting with their workers; they tell them their tips are going to go away if we have to raise your wages," said Jayraman.

Save Our Tips, the group against this legislation, didn't shy away from explaining why they're paid to attend.

"Our employers are paying us because they believe that, they feel strongly that we fight for what we deserve, which is for us to continue to earn a decent living," said Elena James.

The legislation faces an uphill battle as another bill needed to create a ballot measure to end tipped employees from earning a lower wage than the state minimum wage was pulled from the Senate and had its hearing canceled in the House.

It also hasn't been enacted in multiple years of consideration.