Activists are circumventing the legislative process and using the ballot to advance their own union driven agenda. Raise up Massachusetts, which is funded mostly by out-of-state labor PACs, has collected signatures to move to the next stage of the 2018 ballot process.

The proposed ballot question would increase minimum wage by 36% and an even more costly 140% increase for tipped employees in only 4 years!

The Tip Wage allows the highest percentage of employees in a restaurant to earn the highest average wage, with many tipped servers earning in excess of $25 or $30 per hour.

Impact of altering the Tip Credit:

Employers can only pay the tip wage if the employee is claiming at least the difference between the cash wage and the minimum wage in tips and must pay all of the contributory taxes, FICA, FUTA, and SUTA on both the tipped wage paid and the tips received from patrons.
Tipped employees benefit from a natural increase in wages through menu inflation. Menu inflation averages about 3.5% each year, as food and operator costs increase, the menu cost increases and as a result the amount the customer leaves as a tip increases as well.
Massachusetts tipped employee wages have increased 84% in the last 15 years.
Massachusetts has among the highest tipped wage earners in the country (hourly tip wage + declared tips), topping even California which has no tip wage.
Servers are not the ones asking for the increase, the change is driven by activists not in the restaurant industry, yet they will be the workers most negatively impacted with a reduction in pay and loss of hours.

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