Free Republic
Browse · Search
News/Activism
Topics · Post Article

Skip to comments.

Workers' tips at issue in congressional minimum-wage bill
CBS2CHICAGO ^ | 02 AUGUST 2006 | AP

Posted on 08/02/2006 5:33:26 PM PDT by Extremely Extreme Extremist

Wednesday August 02, 2006
By ERICA WERNER
Associated Press Writer

WASHINGTON (AP) Tip money earned by waitresses in Las Vegas, manicurists in Hollywood and bartenders in Seattle is on the table in the nation's capital as lawmakers scrap over an election-year minimum wage bill.

Nevada, California and Washington are among seven states where workers get to keep their tips on top of getting paid their state's full minimum wage. In other states, tip-earning workers get paid less and make up the difference with tips.

A provision in GOP-written minimum wage legislation passed by the House and under consideration this week by the Senate could change the law in those seven states the others are Montana, Alaska, Minnesota and Oregon. It would deal a pay cut of $3 or more an hour to thousands of waiters, bellhops and hairdressers in those states, according to Democrats and labor groups.

``Everything that has been achieved in seven states to support low-wage workers who earn tips is destroyed by this bill,'' said Sen. Dianne Feinstein, D-Calif. ``This bill would slash the salaries of thousands of workers.''

Senate Minority Leader Harry Reid, D-Nev., called the provision a ``travesty.''

Republicans and the National Restaurant Association, which opposes a minimum wage increase and fought for the tip provision, dispute the Democratic interpretation. They say the legislation is only intended to have an impact when the states in question increase their minimum wage at which point the increase would come out of a worker's tips, not an employer's payroll.

``No provision results in the lowering of wages for any worker. The purpose of the provision is to allow employers with tipped employees to count their employees' tips as wages for purposes of meeting their minimum wage obligation,'' Brendan Flanagan, a spokesman for the National Restaurant Association, said in a statement Tuesday after Democrats began raising concerns.

A memo by the nonpartisan Congressional Research Service on Wednesday backed up the Democratic position. Under the bill language, the seven affected states ``would seem to be prohibited from enforcing the minimum wage rate provisions of their laws with respect to a tipped employee'' said the memo, written by Jon A. Shimabukuro, a legislative attorney at the research service, for Sen. Barbara Boxer, D-Calif.

But in a letter to Senate Majority Leader Bill Frist, R-Tenn., a Labor Department official said the department would interpret the bill's language as protecting current wages for tipped employees in the seven states. Victoria Lipnic, assistant secretary of labor for employment standards, offered in the letter to work with lawmakers to clarify the intent of the legislation something several Republican senators, including Norm Coleman of Minnesota, said Wednesday they intended to do.

The minimum-wage-increase legislation already was controversial because House Republican leaders passed it as part of a bill cutting inheritance taxes on multimillion-dollar estates, a top GOP priority opposed by most Democrats. The tipped-workers' provision looked likely to heighten Democratic opposition and could factor into decision-making by lawmakers who haven't yet made their position known, including Democratic Sens. Maria Cantwell and Patty Murray of Washington state.

The GOP package, expected to come to a vote Friday, would increase the federal minimum wage from $5.15 to $7.25 per hour, phased in over the next three years. States with higher state minimum wages in California it's now $6.75 an hour; in Washington $7.63 would keep their higher levels, at least until the federal level exceeds it.

Except for in the seven states at issue, employers of tipped employees now pay only a portion of the minimum wage starting at $2.13 an hour as long as the employees draw enough tips to make up the rest. A tipped employee is defined as one who regularly receives more than $30 per month in tips.

Under the GOP-written legislation, according to Democrats, that same system would go into effect in the seven states where employers now pay the full wage. So instead of getting to keep tips on top of their minimum wage in California, Nevada and the other states, tipped workers would be paid a base wage of $2.13 an hour and employers could use their tips to make up the rest.


TOPICS: Business/Economy; Government; US: California; US: Montana; US: Nevada; US: Oregon; US: Washington
KEYWORDS: congress; minimumwage

1 posted on 08/02/2006 5:33:28 PM PDT by Extremely Extreme Extremist
[ Post Reply | Private Reply | View Replies]

To: Extremely Extreme Extremist
I wouldn't be surprised if the liberals were to propose a maximum wage bill.

Step 3 is full-blown socialism where the govt decides your wages.

2 posted on 08/02/2006 5:36:25 PM PDT by capt. norm (Bumper Sticker: Honk if you've never seen an Uzi shoot from a car window.)
[ Post Reply | Private Reply | To 1 | View Replies]

To: Extremely Extreme Extremist

If these corrupt, socialist-commie US CongressCritters had to work for legislated-wages and tips, they'd have been dead a long time ago, or have turned to another way of more profitable crime. I'd agree to the former scenario; let's start over in congress.


3 posted on 08/02/2006 5:55:13 PM PDT by butternut_squash_bisque (The recipe's at my FR HomePage. Try it!)
[ Post Reply | Private Reply | To 1 | View Replies]

To: Extremely Extreme Extremist
Stupid, stupid, stupid RINOS. See what happens when you play with the dark side? If you really want to show some "compassionate conservatism" toward those poor unskilled schmucks who goofed off during their free education, the quality of which made paying attention paramount, then supplement the income of a minimum wage earner via a bump in the earned income credit (thereby targeting the Head Of Household working poor) and stop pricing high school kids out of after school jobs and adding inflationary pressure. What you are really implementing with the minimum wage hike is a tax on the fixed incomers, not to mention the very people you are trying to help.
4 posted on 08/02/2006 6:03:14 PM PDT by NonValueAdded (Tom Gallagher, the anti-Crist)
[ Post Reply | Private Reply | To 1 | View Replies]

To: Extremely Extreme Extremist

Here in Wisconsin waitress and waiters only get $2.33 an hour. Slave wages.


5 posted on 08/02/2006 6:10:26 PM PDT by Gimli
[ Post Reply | Private Reply | To 1 | View Replies]

To: Extremely Extreme Extremist

The "congressional research service" is not "non-partisan", it is "bi-partisan" in the truest sense of the word. It will deliver a highly partisan opinion for EITHER side of the issue, as requested.


6 posted on 08/02/2006 6:27:22 PM PDT by CharlesWayneCT
[ Post Reply | Private Reply | To 1 | View Replies]

To: Gimli
Image hosted by Photobucket.com same here in ny... but what about the eight bucks or so an hour in tips that only one or two of is declaired in taxes??? i say pay them a flat rate and do away with tipping all together.
7 posted on 08/02/2006 6:50:46 PM PDT by Chode (American Hedonist ©®)
[ Post Reply | Private Reply | To 5 | View Replies]

To: Chode

Just about everywhere I go there is a tip jar...are these declared--probably not. I ordered an iced tea and there is the tip jar at Starbucks. Order a sandwich at a walk up and there is the tip jar. It goes on and on. I thought we had to tip wait staff because they got sub-minimum wage but I guess I was wrong in California--should have known.


8 posted on 08/02/2006 8:10:44 PM PDT by kmiller1k (AB)
[ Post Reply | Private Reply | To 7 | View Replies]

To: Gimli
Here in Wisconsin waitress and waiters only get $2.33 an hour. Slave wages.

Same with Kansas and Missouri. What's the big deal? When I worked as a waiter (it's been a long time) I think that I made $2.10 an hour, but it may have been less. However, with tips I made a pretty good wage. Of course, I had to hustle to get the tips, and I always worked hard for my customers. It didn't always pay off, but I was making well above the (non tipping) minimum wage. Not too bad for a guy just out of high school. And there were some waitresses working there who averaged about $11 or $12 an hour, back in 1980.

Mark

9 posted on 08/02/2006 8:55:39 PM PDT by MarkL (When Kaylee says "No power in the `verse can stop me," it's cute. When River says it, it's scary!)
[ Post Reply | Private Reply | To 5 | View Replies]

To: Gimli
Here in Wisconsin waitress and waiters only get $2.33 an hour. Slave wages.

then they should look for better jobs

10 posted on 08/03/2006 6:42:39 AM PDT by Vaquero ("An armed society is a polite society" Robert A. Heinlein)
[ Post Reply | Private Reply | To 5 | View Replies]

Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.

Free Republic
Browse · Search
News/Activism
Topics · Post Article

FreeRepublic, LLC, PO BOX 9771, FRESNO, CA 93794
FreeRepublic.com is powered by software copyright 2000-2008 John Robinson