There’s another push at the state legislature for a lower minimum wage for restaurant and bar workers who make over a certain amount in tips. Molly, a single mother from Lonsdale, told House lawmakers at a Monday hearing, “If you add the tip penalty here in Minnesota, you’ll be taking away from my family as well as other families just like mine.” But Michaelann Gillis with Restaurant Workers of America warns without a “tip credit” some establishments will close, while others to cut costs will move to counter service and automation. Gillis says, “We don’t even know how many thousands and thousands of low-wage, entry-level jobs will be lost due to this.”
The so-called “tip credit” has become a perennial debate at the Minnesota Legislature with Republicans generally supporting the measure and most Democrats opposing it.