Press Release: 2024-10-15

Phasing Out the Tipped Wage is Harmful for Massachusetts

 

Date: October 11, 2024 

 

As you all know from the many campaign ads hitting the airwaves, the 2024 election is fast approaching. Massachusetts is notorious for referendum ballot questions that will often hurt small businesses and weaken the overall state economy. Whether a paid sick leave mandate, a $15 minimum wage, a new paid family and medical leave program, or the income tax surcharge, these types of questions backed by labor and activist groups have a profoundly negative impact on how you do business.

This year is no different with an out-of-state group trying to impose a harmful phase-out of the tipped wage on the hospitality industry via Question 5. Proponents falsely claim tipped employees are paid below the state minimum wage and to remedy this Massachusetts must phase out the tipped wage. Of course this is patently untrue, with Massachusetts law ensuring that if a workers’ pay with tips does not meet at least $15 per hour per shift, the employer is responsible for the differential. In fact, some servers earn well above the state minimum wage at full-service restaurants.

NFIB has consistently opposed any legislation phasing out the tipped wage and enthusiastically joined the coalition working to protect tips by urging Massachusetts residents to reject Question 5. We are reminding voters in the state that the servers themselves oppose this proposal fearing their take home pay will be reduced and that they prefer the status quo. Those directly impacted, the employees, also are uncomfortable with the provisions on tip sharing, demanding workers split their tips with cooks, dishwashers, even management. If passed, it will likely result in service fees for consumers, changes from full-service restaurants to quick serve models, closures, and fewer jobs in the hospitality industry. Question 5 will have a direct effect on other businesses like food wholesalers, delivery, cleaning services, tourism, with the potential to also impact hairdressers, barber shops, nail salons, etc.

We ask that you help defeat this harmful proposal by:

• Visiting Home | Protect Tips | Ballot Question to learn about resources or how to financially contribute to keep the opposition ads running on television.


• Learning how you can play a grassroots role by completing this NFIB survey and send a quote, image, or video from our upcoming Question 5 landing page.

Please feel free to reach out to NFIB by contacting Christopher.Carlozzi@nfib.org with any questions or concerns.