Sacramento Restaurants Weigh Ditching Tipping As Minimum Wage Increases
SACRAMENTO (CBS13) — Sacramento restaurants are considering joining restaurants in other cities and eliminating tips to absorb the rising minimum wage, and instead using a service charge.
Some restaurants in San Francisco and Seattle have already gone tip free, adding a non-negotiable service charge to bills instead.
The details are still being ironed out, but one spot in Oakland has tacked on a 16 percent surcharge. A portion would go to servers, while the rest covers the cost of rising salaries.
In January, the minimum wage climbs to $10 an hour in the capital city, while in Los Angeles it will be $15 an hour in 2020. State lawmakers are also considering a bill to raise California's minimum wage to $13 an hour.
