Some Progressives Tried To Abolish the Tipped Minimum Wage. Now They're Backtracking.
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Policymakers across the country are confronting the unfortunate—and predictable—economic results of prohibiting restaurants from paying servers a lower base wage supplemented by tips.
In recent years, one of the predominant policy initiatives of the progressive left has been raising the minimum wage in locales around the country. At the same time, left-leaning politicians have sought the elimination of what's known as the tip credit, which allows employers to pay restaurant servers and other tipped employees a lower hourly base wage that they then bolster with gratuities.
Just a few years into this experiment, however, policymakers are showing signs of an about-face on the tip credit's abolition as they grapple with the unfortunate, and predictable, economic results.
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Jarrett Dieterle is a legal policy fellow at Manhattan Institute, where his work focuses on labor law, administrative law, and urban policy.