Baltimore City Council introduces bill that would raise wages for tipped workers

The Baltimore City Council introduced a bill Monday that would raise wages for tipped service workers and eliminate the subminimum wage.

According to advocates, low wages have driven poverty and inequity in the city's restaurant industry. 

Several local workers, business owners and union leaders joined city councilmembers during a news conference Monday to discuss the One Fair Wage Baltimore Bill.

Advocates said the legislation builds on a movement in Maryland to end the two-tier wage system, which enables tipped workers to be paid as little as $3.63 per hour before tips. 

The push for the One Fair Wage Baltimore bill comes as advocates say the industry is in crisis. 

"Since the pandemic, thousands of restaurant workers across Maryland have left their jobs, citing low wages, wage theft, and unsafe conditions," advocates said in a statement. 

The bill would help rebuild the restaurant workforce by attracting experienced workers and ensuring that no worker is forced to rely on tips. 

According to advocates, the origins of the subminimum wage are rooted in racism and post-Emancipation-era policies that allowed restaurant owners to underpay Black workers and women by replacing wages with tips.  

Advocates say in Baltimore, the majority of tipped workers are women of color who continue to earn just $3.36 an hour and experience sexual harassment and wage theft. 

Maryland bill aims to protect workers 

Maryland leaders also took steps to protect workers through the No Tax on Tips Act.

However, the legislation has not been passed, and the 2025 legislative session ends on Monday, April 7. 

If passed, the bill would raise Maryland's minimum wage to $20 per hour by 2027 and strengthen wage theft enforcement. 

Under the bill, employers would have to pay each employee either the federal minimum wage or the state minimum wage. The subminimum wage for tipped workers would be eliminated.