Our coalition supports a pathway to a $15/hour minimum wage in Minneapolis.
We share the belief that employees should be properly compensated for their hard work in this changing economy to support their families. As members of the Minneapolis community, we want the city’s businesses – and the employees who depend on them – to thrive. An increase in the minimum wage will empower all segments of the population in Minneapolis – especially women and people of color.
Most restaurants and bars compensate their employees in a unique way.
Restaurant work is a service-driven profession. The tips restaurant workers receive are both a wage and reward. While management is able to track tips (which mostly happen now via credit card) for tax purposes, tips go directly to the restaurant employee without management interference. Restaurant workers benefit from both an hourly wage and tips. In full service restaurants, servers, bartenders, and delivery drivers are often the highest paid employees based on the combination of tips and wages. Because of this pay structure, many restaurant employees are already making $15 an hour or more.
Recognizing total taxable income will protect the jobs and income of restaurant employees.
Raising the standard to $15 without recognizing employees’ total taxable income would have the unintended consequence of making it harder and more costly for bars and restaurants to hire more employees. Many restaurant and bar staff are those most in need of access to good, local jobs. Forcing neighborhood restaurants and bars to raise the minimum wage without recognizing tips will end up hurting those it is intended to help, either through reduced working hours or because of layoffs.