Maryland One Fair Wage Act: An income stabilizer, or a small business burden

BALTIMORE -- This year, minimum wage in Maryland increased to $15 an hour, but a coalition of labor activists say a big part of the workforce was left behind: servers and bartenders who rely on tips. 

A proposed bill would ensure tipped workers are paid minimum wage, but not all restaurant employees are on board.

Some restaurant workers say Senate Bill 160 or the 'One Fair Wage Act' would help stabilize their income, while others say it would take a major toll on their livelihood.

Thursday, members of a national coalition called One Fair Wage rallied outside of the state house in support of senate bill 160.

"It is time for the country to pay these workers a full minimum wage with tips on top," said One Fair Wage President, Saru Jayaramam.

Sponsored by Senators Cory McCray and Arthur Ellis, the 'One Fair Wage Act' would phase out the subminimum wage for tipped workers in maryland, which currently sits at $3.63 per hour. Workers would instead be paid minimum wage plus tips.

Tia Hamilton, who co-owns My Mama's Vegan in Baltimore, said she already does that.

"When we do that, we keep quality employees," said Hamilton.

Georgia-based restaurateur, Ronald Hsu, joined OFW to advocate for the bill. He said paying his employees at least minimum wage creates a better work environment with less turnover, where servers' income isn't at the mercy of customers. 

"They should be able to go to work and know that they're going to get paid a certain amount of money," Hsu said.

However, Jayce Chapman said he already makes well above minimum wage as a server and bartender and worries the One Fair Wage Act would actually lower his income.

"Minimum wage, hourly wage could not sustain the lifestyles that most of us live," said Chapman. 

General manager of Ruth's Chris in Odenton, Jake Mitich, said his servers make $80-100k a year. He said restaurant owners would have to offset the cost of paying servers $15 an hour with a service charge that would ultimately hurt the business and the servers in the long run.

"Unfortunately, the restaurant in order to stay open will have to take a portion of that. No one understands that. So instead of getting 18%, you're looking at a server getting 10% and then they're taxed on that 10% for the bill," said Mitich. 

The bill did not make it to a vote last year. If it passes this time around, it would go into effect on October 1st.

You can read more about SB 160 here.