ANNAPOLIS, Md. — Your favorite waiter, waitress, or bartender could be getting a significant raise if a new Maryland bill becomes law.
Currently, the state's subminimum wage for those tipped workers is $3.63 an hour.
Senate Bill 803which is being introduced Thursday, proposes to increase that to the state's minimum wage, which lawmakers also are considering raising up to $15 an hour.
The state minimum wage went up to $13.25 on January 1, 2023, while the subminimum wage for tipped workers has remained at $3.63 for nearly ten years.
The coalition One Fair Wage estimated since the pandemic and the great resignation, nearly 20,000 Maryland restaurant workers quit their jobs.
Hundreds of Maryland restaurants are raising wages to recruit staff, but some find many workers will not return to the service industry unless they can make full minimum wage.
Maryland's tipped workers already have seen their neighbors in Washington D.C. get a bump in pay.
Last November, D.C. voters approved to raise the wage for tipped workers from $5.35 to the full minimum wage of $16.10 an hour.
Some Maryland wait staff might prefer to make the commute to D.C. to make more money, creating increased competition for service workers and staffing issues for Maryland restaurants in the d.c. area.
Raising the subminimum wage would affect more than 185,000 tipped workers in Maryland.
Senate Bill 803 would ensure that tipped service workers earn not only a full minimum wage but tips as well.
Meanwhile, inflation is taking a toll on both employers and employees, as business owners say higher pay and increased operating costs could force them to make a choice to pass expenses along to their customers or go out of business.
Philly’s Best Pizza and Subs owner Shawn Path said “one more year i’m going to watch and then i’ll probably go into a different kind of business. sell it or close it something like that.”
Coffee Talk Cafe owner Nara Khakurel said “we are kind of pressured to increase the prices maybe six or seven percent for most of the sandwiches and coffee.”
State Senator Arthur Ellis along with Maryland restaurant owners and a group of tipped service workers will introduce Senate Bill 803 in Annapolis Thursday at 12 p.m.
