The so-called “tip penalty,” introduced in both the House and Senate earlier this month by a coalition of three Republicans and three DFLers, drew sharp criticism from labor unions, which have fought similar measures in previous legislative sessions.
Wade Luneburg, legislative director for UNITE HERE Local 17, which represents hotel and restaurant workers in the Twin Cities, said the tip penalty would “chip away” at restaurant servers’ wages.
“We think that’s unproductive, particularly in tough economic times,” Luneburg said. “As the minimum wage increases, it would leave servers behind.”
Advocates argue the tip penalty is necessary to shield Minnesota’s hospitality industry from the cost of a 70-cent increase in the state’s minimum wage, from $6.55 to $7.25, scheduled for July 24. The legislation would allow employers to pay workers the old minimum wage, but only if they earned an average of $12 per hour in wages and tips during that pay period.
Unions, however, say workers shouldn’t be paid less for making more in tips. Luneburg called it a “philosophical difference” between workers and management over what constitutes a server’s wages.
“We don’t believe that tips are wages,” Luneburg said. “We believe the tips are earned by the servers for their service. The wage is what the employer pays.”
It’s a distinction labor leaders seemingly find themselves making every year during the legislative session. Introduction of a tip penalty has become a “perennial” event at the Capitol, Luneburg said.
“As long as a minimum wage bill comes forward from advocates, the industry will always come forward with a tip penalty,” Luneburg said. “It’s like cause and effect.”
This year, though, the tip penalty is co-authored by three labor-endorsed DFLers from Woodbury: Sen. Kathy Saltzman and Reps. Julie Bunn and Marsha Swails. That took labor lobbyists by surprise.
“Generally, we’d like to think that labor-endorsed candidates make a commitment to working people and certainly to supporting a floor called the minimum wage,” Luneburg said.
“We understand there are challenges for the industry, and we’re heavily involved in helping management in these really difficult times,” he added. “There are layoffs, cutbacks in hours – we have a full understanding of where the employers are.
“But chipping away at the lowest-paid workers in your restaurant or your hotel is not going to solve the problem. It’s not going to close the door of a restaurant by paying the minimum wage. That’s why we’re prepared to fight for these workers.”
UNITE HERE Local 17 and the Minnesota AFL-CIO are asking supporters to call labor-endorsed lawmakers, and ask them to stand up for workers by rejecting a wage penalty on tipped employees. The list includes:
• Kathy Saltzman, 651-296-4166.
• Julie Bunn, 651-296-4244.
• Marsha Swails, 651-296-1147.
• Jim Metzen, 651-296-4370.
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The so-called “tip penalty,” introduced in both the House and Senate earlier this month by a coalition of three Republicans and three DFLers, drew sharp criticism from labor unions, which have fought similar measures in previous legislative sessions.
Wade Luneburg, legislative director for UNITE HERE Local 17, which represents hotel and restaurant workers in the Twin Cities, said the tip penalty would “chip away” at restaurant servers’ wages.
“We think that’s unproductive, particularly in tough economic times,” Luneburg said. “As the minimum wage increases, it would leave servers behind.”
Advocates argue the tip penalty is necessary to shield Minnesota’s hospitality industry from the cost of a 70-cent increase in the state’s minimum wage, from $6.55 to $7.25, scheduled for July 24. The legislation would allow employers to pay workers the old minimum wage, but only if they earned an average of $12 per hour in wages and tips during that pay period.
Unions, however, say workers shouldn’t be paid less for making more in tips. Luneburg called it a “philosophical difference” between workers and management over what constitutes a server’s wages.
“We don’t believe that tips are wages,” Luneburg said. “We believe the tips are earned by the servers for their service. The wage is what the employer pays.”
It’s a distinction labor leaders seemingly find themselves making every year during the legislative session. Introduction of a tip penalty has become a “perennial” event at the Capitol, Luneburg said.
“As long as a minimum wage bill comes forward from advocates, the industry will always come forward with a tip penalty,” Luneburg said. “It’s like cause and effect.”
This year, though, the tip penalty is co-authored by three labor-endorsed DFLers from Woodbury: Sen. Kathy Saltzman and Reps. Julie Bunn and Marsha Swails. That took labor lobbyists by surprise.
“Generally, we’d like to think that labor-endorsed candidates make a commitment to working people and certainly to supporting a floor called the minimum wage,” Luneburg said.
“We understand there are challenges for the industry, and we’re heavily involved in helping management in these really difficult times,” he added. “There are layoffs, cutbacks in hours – we have a full understanding of where the employers are.
“But chipping away at the lowest-paid workers in your restaurant or your hotel is not going to solve the problem. It’s not going to close the door of a restaurant by paying the minimum wage. That’s why we’re prepared to fight for these workers.”
UNITE HERE Local 17 and the Minnesota AFL-CIO are asking supporters to call labor-endorsed lawmakers, and ask them to stand up for workers by rejecting a wage penalty on tipped employees. The list includes:
• Kathy Saltzman, 651-296-4166.
• Julie Bunn, 651-296-4244.
• Marsha Swails, 651-296-1147.
• Jim Metzen, 651-296-4370.