Statement June 21, 2023
Joe Massaro, president & CEO of the Pennsylvania Restaurant & Lodging Association
The tipped wage in Pennsylvania works for employees, employers, and consumers. PRLA is disappointed to see the House pass HB 1500 on Tuesday, particularly given the drastic changes to the tipped wage.
Changing the tipped wage in Pennsylvania will negatively impact the tipped employees the legislation is intending to help. On average, a tipped employee earns anywhere between $27 and $41.50 per hour with some reporting significantly higher hourly wages. Adapting to a change in the tipped wage system will likely lead to increased menu prices, the addition of service charges, a switch to automation, and reduced hours and employees, all of which will negatively affect the earning potential of tipped employees.
The argument that tipped employees make a sub-minimum wage is simply not true. If tips and the base wage don’t equal the full minimum wage, state and federal law protects workers by requiring employers to make up the difference. Again, to be clear, if a tipped employee does not earn the minimum wage when working their shift, it is a legal obligation of the business owner to close that gap.
Maintaining the tipped wage as is provides tipped employees with greater earning potential and restaurant owners with the capability to reinvest in their non-tipped employees and business.
Media Contacts:
PRLA: Stephanie Otterson, (717) 963-8369 or sotterson@prla.org
Food Shelter: Lorraine Gimblett (917) 523-2327 or lorraine@food-shelter.com