Tipped workers in Maryland currently earn an hourly wage of $3.63. Baltimore City Councilman John Bullock (D-09) has introduced legislation aimed at eliminating this subminimum wage for servers.
The ordinance proposes a gradual pay increase over the next five years.
It would match the full minimum wage, with tips on top as a bonus, instead of a subsidy. Bullock, along with restaurant workers and advocates held a news conference outside of City Hall on Monday, calling attention to the legislation.
In an interview with WYPR, Bullock said those working for tips under the current system are in a 'precarious situation.' “Having a standard minimum wage, having predictability, is very important for people trying to support their families,” said the councilman.
Bullock framed the legislation as an equity issue, pointing out its potential to significantly impact women and people of color, who he says constitute the majority of servers in Baltimore City.
According to One Fair Wage (OFW) — an advocacy organization in Washington D.C. that seeks to change laws to protect service industry workers — the subminimum wage is a legacy of slavery and Jim Crow. The two-tier wage system was put in place to allow restaurant owners to hire newly freed Black workers — primarily women — by forcing them to rely on tips, instead of fair wages.
Saru Jayaraman, president of OFW, has worked with various state lawmakers on legislation that would increase pay for tipped workers earning less than the federal minimum wage of $7.25. However, those efforts stalled in Annapolis.
“Raising wages is not only good politics but also good policy. It ensures workers get paid a fair wage and begins to address the terrible legacy of racism, harassment and discrimination in our service economy,” an OFW spokesperson wrote in a statement.
Support for Bullock’s bill spans across SEIU 1199, Baltimore Young Democrats, and civil rights groups. Similar laws have passed in other jurisdictions including Los Angeles, Las Vegas and Washington State, where restaurant owners have shown support. However, the Restaurant Association of Maryland opposes the measure.
“If I know that folks are making a fair wage,” said Bullock. “And I know that I'm getting good service, I'm okay with the minimal uptick in terms of the charge,” added the councilman, maintaining his bill will not overburden consumers.
