Voters in several states will soon decide on ballot measures that could significantly impact tipped worker wages. Proposals in Massachusetts and Arizona aim to alter current tipping structures, potentially leading to higher base pay for these workers.
Massachusetts and Arizona have proposals on the ballot to alter tipped worker wages.A Feb. 18 rally celebrating the California Labor Commissioner’s order for a McDonald's franchise to rehire and compensate workers who went on strike for coronavirus protections was held on Feb. 18, 2021.
"Raising the minimum wage and requiring paid sick leave helps both workers and small businesses, by incentivizing workers to stay at a job where they earn secure benefits and respectable pay," said Alaska AFL-CIO President Joelle Hall. Richard von Glahn, campaign manager for Missourians for Healthy Families and Fair Wages, said the ballot measure was"critically important."
LAO expects businesses to pass on their extra labor expenses to customers, but anticipates the overall increases in costs would be modest, at less than half of 1%.Massachusetts and Arizona both have ballot measures this fall concerning the minimum wage for workers who also make tips. But, in practice, he said,"this is highly difficult to enforce, since it often requires workers themselves to be aware of the law, calculate the difference between their own wages and the legal minimum, and confront their employer."in Massachusetts would slowly phase out its tipped minimum wage of $6.75 per hour, until it eventually matches the state's standard minimum wage by 2029. The current minimum wage in the state is $15 an hour.
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