WASHINGTON, D.C. — President Joe Biden’s proposed $1.9 trillion COVID-19 aid package would increase the nation’s minimum wage to $15 an hour. But, it would also eliminate tip credit.
Mike Whatley, Vice President of Public Affairs for the National Restaurant Association, told WMBD’s “The Greg and Dan Show”, that’s actually bad news for a lot of restaurant workers.
“For many servers, it’s actually a pay cut, because right now they’re making well in excess of $15 an hour. Usually, $19-$25 an hour,” Whatley said.
Without tip wages, Whatley said most restaurants would likely eliminate tipping and add an automatic service charge upwards of 20% to make sure their servers make at least $15 an hour.
Whatley said President Biden’s coronavirus aid package would require a massive labor increase for the restaurant industry.
“And, that’s at a time when we can least afford it. Because, 110,000 restaurants have closed because of the pandemic,” Whatley said.
