HHS Item 1
June 16,2015
Worksession
MEMORANDUM
June 12,2015
TO:
Health and Human Services Committee
FROM:
Robert H. Drummer, Senior Legislative
AttDrney
~
Minimum Wage - Tipped
SUBJECT:
Worksession:
Expedited Bill 24-15, Human Rights
Employee - Amendments
Expedited Bill 24-15, Human Rights - Minimum Wage
Tipped Employee
Amendments, sponsored by Lead Sponsors Councilmembers Berliner, Katz, Council Vice
President Floreen, and Councilmember Rice was introduced on May 21,2015. A public hearing
was held on June 9.
Bill 24-15 would:
(1 )
modifY the amount of the tip credit an employer can use
to
calculate the minimum
wage for a tipped employee working in the County;
(2) require an employer of a tipped employee to submit quarterly wage reports;
(3) require the Executive to establish an online reporting system for quarterly wage
reports; and
(4) generally amend the law governing the minimum wage for a tipped employee working
in the County.
Background
In November 2013, the County enacted Bill 27-13, Human Rights and Civil Liberties
County Minimum Wage - Dollar Amount, establishing the County minimum wage with phased
increases on October 1 of each year through 2017. Earlier this year the Council modified some of
the effective dates for the phased increases by enacting Bill 59-14, Human Rights and Civil
Liberties - County Minimum Wage Effective Dates.
A tipped employee under Bill 27-13 must be paid the County minimum wage, but the
employer may subtract from the hourly wage paid a tip credit. The maximum tip credit is the
County minimum wage less 50% ofthe State minimum wage. For example, the County minimum
wage is $8.40 per hour. The State minimum wage is currently $8.00 per hour. Therefore, the
maximum tip credit is $8.40 less $4.00 (50% of $8.00) or $4.40. Therefore, an employer must pay
a tipped employee working in the County a base pay of $4.00 per hour. If the employee does not
earn enough in tips to cover the tip credit, the employer must make up the difference. However,
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the maximum tip credit will change as the County minimum wage and the State minimum wage
change over time. A chart showing the different wage rates and the tip credit over time is at <05.
The County minimum wage less the tip credit (the County base pay for a tipped employee) is
always 50% of the State minimum wage, but it would change over time as the State minimum
wage rises. However, the State minimum wage less the State tip credit (the State base pay for a
tipped employee) remains at the current $3.63 per hour.
Bill24~15
would keep the County base
pay for a tipped employee at its current $4.00 per hour as the State minimum wage rises.
An
employer would still have to ensure that a tipped employee working in the County receives enough
tips to cover the tip credit.
The Bill would also require the Executive to establish an online reporting system and an
employer would have to file a quarterly report certifYing that each tipped employee received the
minimum wage through the base pay plus tips.
Public Hearing
Shelley Moskowitz, representing Jews United for Justice (<06) opposed the Bill because it
would freeze the base pay for tipped employees. Ashlie Bagwell, Harris Jones
&
Malone,
representing a coalition of County Restaurants, Dan Simons, owner of Founding Farmers
Restaurants, Lynn Martins, Seibel's Restaurant, and Omar Martinez, Silver Diner Restaurant each
supported the Bill. The restaurant representatives argued that forcing a restaurant to increase the
base pay for their servers, who earn significantly more than the County minimum wage in tips,
would give them less money to pay their
non~tipped
employees working in the kitchen. We also
received similar written testimony from the Restaurant Association of Maryland
(<O7~9)
and
Clyde'S Restaurant Group (<010-11).
Issues
1. What is the fiscal and economic impact of the Bill?
OMB and Finance were unable to complete the fiscal and economic impact statement
before the packet went to print. We will attach it as an addendum if we receive it before the
worksession.
2. Should the base pay for tipped employees be set at $4.00 per hour?
Tipped employees must be paid the County minimum wage for all hours worked in the
County. If the sum of the base pay plus the tips received does not equal the County minimum
wage, the employer must pay the employee the difference. The current base pay for tipped
employees will keep rising as the State minimum wage rises. See the chart at (<05). The restaurant
industry representatives argued that tipped employees in their restaurants already earn more than
the minimum wage in tips alone. For example, the general manager for Seibel's Restaurant in
Burtonsville, Lynn Martins, testified that the servers in her restaurant average $22 per hour in tips.
Therefore, raising the base pay for a server working at Seibel's would increase the pay for a server
and reduce the amount of revenue available for the restaurant to pay non-tipped employees
working in the kitchen. In addition, the rising base pay for tipped employees is complicated for
2
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businesses to keep up with and difficult to enforce.
Council staff recommendation:
approve the
provision setting base pay for tipped employees at $4.00 per hour.
3. Should the Bill require quarterly payroll reports?
The Bill would require each employer in the County to send a quarterly payroll report to
the Director ofthe Office of Human Rights within 30 days after the end of the quarter. The report
must include a certification from the employer that each tipped employee was paid the County
minimum wage. The Bill would also require the Executive to establish an internet based reporting
system for an employer of a tipped employee to complete these reports.
By law, the Maryland Department of Labor Licensing and Regulation (DLLR) has
authority to investigate complaints about the County's minimum wage law and take action to
enforce it. The County Office of Human Rights has concurrent authority to do so, but due to
staffing limitations, routinely refers complaints to DLLR. However, according to Jenny Baker,
Assistant Attorney General and counsel for the DLLR, the State would not accept a request to
investigate an employer from the County reSUlting from a review of a payroll report required by
Bill 24-15. (See ©12) DLLR only accepts complaints from an employee. Therefore, if a review
ofthe payroll record indicates a violation, the County would have to either investigate the employer
itself or ask an affected employee to file a complaint with the State directly.
None of the restaurant representatives objected to the proposed quarterly payroll reporting
requirement. Although, it may not lead to greater enforcement by the State, it could encourage
employers to comply with the law.
Council staff recommendation:
approve the new reporting
requirement.
This packet contains:
Expedited Bill 24-15
Legislative Request Report
Chart showing tipped employee wages
Testimony
Jews United for Justice
Restaurant Association of Maryland
Clyde's Restaurant Group
Email from Jenny Baker
F:\LAW\BILLS\1524 Minimum Wage - Tipped Employee - Amendments\HHS Memo.Docx
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Expedited Bill No. :;24;!...-..!..!15::..-_ _ __
Conceming: Human Rights - Minimum
Wage -
Tipped Employee ­
Amendments
Revised: Mav 19, 2015 Draft No.
L
Introduced:
May 21, 2015
Expires:
November 21.2016
Enacted: _ _ _ _ _ _ _ __
Executive: _ _ _ _ _ _ _ __
Effective: _ _ _ _ _ _ _ __
Sunset Date:
_N~o::::.l.n:.=e~
_ _ _ __
Ch. _ _, Laws of Mont. Co. _ __
COUNTY COUNCIL
FOR MONTGOMERY COUNTY, MARYLAND
Lead Sponsors: Councilmembers Berliner,
Katz,
Council Vice President Floreen, and
Councilmember Rice
AN EXPEDITED ACT
to:
(1)
(2)
(3)
(4)
modify the amount of the tip credit an employer can use to calculate the minimum
wage for a tipped employee working in the County:
require an employer ofa tipped employee to submit quarterly wage reports;
require the Executive to establish an online reporting system for quarterly wage
reports; and
generally amend the law governing the minimum wage for a tipped employee
working in the County.
By amending
Montgomery County Code
Chapter 27, Human Rights and Civil Liberties
Section 27-69
Boldface
Underlining
[Single boldface brackets]
Double underlining
[[Double boldface brackets]]
* * *
Heading or defined term.
Added to existing law by original bill.
Deletedfrom existing law by original bill.
Added by amendment.
Deletedfrom existing law or the bill by amendment.
Existing law unaffected by bill.
The County Council for Montgomery County, Maryland approves the following Act:
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EXPEDITED
Bill No. 24-15
1
Sec.
1.
Section 27-69 is amended as follows:
27-69.
(a)
Tipped Employees.
Definition.
As used in this Section,
tipped employee
means:
2
3
4
(1)
an employee who:
(A)
is engaged
In
5
6
an occupation in which the employee
customarily and regularly receives more than $30 each
month in tips;
(B)
7
8
9
10
11
12
has been informed by the employer about the provisions of
this Section; and
(C) . has kept all of the tips that the employee received.
(2)
Notwithstanding paragraph (1 )(C), this Section does not prohibit
the pooling of tips.
(b)
Computation of wage.
13
14
15
Except as provided in subsection (c), an
employer may include, as part of the wage of a tipped employee:
(1)
an amount that the employer sets to represent the tips of the
employee; or
(2)
if the employee or representative of the employee satisfies the
Director that the employee received a lesser amount in tips, the
lesser amount.
(c)
Limit.
The tip credit amount that the employer may include under
16
17
18
19
20
21
subsection (b) must not exceed the County minimum wage less [50% of
the minimum wage required for that employee under the State Act]
$4.00 per hour.
(ill
Reports.
An
employer who employs
§:
22
23
24
tipped employee in the County
25
must submit
~
quarterly wage report within 30 days after the end of each
quarter to the Director certifying that each tipped employee was paid the
minimum wage required
Qy
this Section.
@-t:\law\billS\1524 minimum wage - tipped employee - amendments\bill 2.docx
26
27
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ExPEDITED BILL
No. 24-15
28
29
30
31
W
Online reporting system.
The Executive must establish an internet
based reporting system for an employer of!! tipped employee to submit
the quarterly wage report required
Qy
subsection
®
Sec. 2.
Expedited Effective Date.
IS
32
33
The Council declares that this legislation
necessary for the immediate
protection ofthe public interest. This Act takes effect on July 1,2015.
Approved:
34
35
George Leventhal, President, County Council
Date
36
Approved:
37
Isiah Leggett, County Executive
Date
38
This is a correct copy ofCouncil action.
39
Linda M. Lauer, Clerk ofthe Council
Date
0f:\lSw\billS\1524
minimum wage - tipped employee - amendments\bill2.docx
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LEGISLATIVE REQUEST REPORT
Expedited Bill 24-15
Human Rights
-
Minimum Wage
-
Tipped Employee
-
Amendments
DESCRIPTION:
Bill 24-15 would:
(1) modify the amount of the tip credit an employer can use to
calculate the minimum wage for a tipped employee working
in the County;
(2) require an employer ofa tipped employee to submit quarterly
wage reports; and
(3)
require the Executive to establish an online reporting system
for quarterly wage reports.
The changing base pay for a tipped employee has caused some
confusion among employers
in
the County.
Reduce confusion over the amount ofbase pay for a tipped employee.
PROBLEM:
GOALS AND
OBJECTIVES:
COORDINATION:
Human Rights, County Attorney
FISCAL IMPACT:
To be determined.
ECONOMIC
IMPACT:
EVALUATION:
EXPERIENCE
ELSEWHERE:
SOURCE OF
INFORMATION:
N/A
Federal. State, and County minimum wages are different.
Robert H. Drummer, Senior Legislative Attorney
APPLICATION
WITmN
MUNICIPALITIES:
No change.
PENALTIES:
No change.
F:\LAW\BILLS\1524 Minimum Wage" Tipped Employee" Amendments\LRR.Docx
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County and
State Minimum Wage for Tipped Employees
County
minimum wage for tipped employees
=
County minimum wage minus County "tip credit."
County
tip credit must not exceed the County minimum wage minus 50% of the State minimum wage.
State
minimum wage for tipped employees
=
State minimum wage minus State "tip credit."
State
tip credit must not exceed State minimum wage minus $3.63.
0)
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Testimony of Shelley Moskowitz
on behalf of Jews United for Justice
to
Montgomery County Council
Hearing on Expedited Bill 24-15,
Human Rights - Minimum Wage - Tipped Employee Amendments
June 9, 2015
Good afternoon. My name is Shelley Moskowitz. I am here today on behalf of Jews United for Justice
(JUFJ) which has an active and growing membership base in Montgomery County, Maryland. I have
lived in the metro-DC region for over 25 years and I am a past President of JUFJ's Board of Directors. I
want to thank the Council for holding this hearing today and giving me an opportunity to speak.
Biil24-15 would modify the amount of the tip credit an employer can use to calculate t."'le minimum wage
for a tipped employee working in the County.
It
would require an employer of a tipped employee to
submit quarterly wage reports and it would require the Executive to establish an online reporting system
for those reports; and it generally amends. the law governing the minimum wage for a tipped employee
working in the County.
JUFJ and hundreds of our members were strong supporters of efforts to raise the minimum wage in
Montgomery County and the state of Maryland. While the bill that went to the Governor's desk gradually
raises the state minimum wage to $10.10,
it
also included amendments favored by restaurant industry
lobbyists that froze the wages oftipped workers at a sub-minimum rate of
$3.63
per hour. Montgomery
County's minimum wage gradually increases to $11.50 in 2018 with tipped workers' wages slated to be
set at half of the rising state minimum wage. The bill under consideration today would lock Montgomery
County's tipped workers' wages at $4.00 per hour rather than allowing it to grow to $5.05. Why? This
may eliminate some confusion among County employers when they calculate the tip credit as the base
state wage rises, but more than anything, it does a disservice to low-wage tipped workers. They must
make up the gap by relying on tips that by their very nature are unpredictable - they can go up or down
depending on the weather or the shift they are given. While some tipped workers at white tablecloth
restaurants may earn a good living with tips, the average worker earns less than $10 per hour. Since
customers are unlikely to change their tipping behavior, it means that more tipped workers
will
be
in
danger of making less than minimum wage.
In theory, employers are supposed to pay their workers the amount needed to bring them up to minimum
wage if their tips are too low. Unfortunately, few managers make it easy for workers to make up the
difference and many employees are either unaware of this regulation or fear for their jobs if they speak
up. Bill 24-15 may improve reporting, but it does not guarantee compliance.
Jewish tradition teaches that we have a duty to "speak up, judge righteously, champion the poor and the
needy (Proverbs
31:9)."
That is why I am here today. Seven states, including California and Minnesota
already provide the same minimum wage for restaurant workers as for everyone else. We will continue to
stand with tipped workers and we want to work with you to close the wage gap. Thank you.
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R.E STAU R.ANT
ASSOCIATION
MARYLAND
Council Bill 24-15
Position and Issue Background
The
Restaurant Association
of
Mary/and
strongly supports Council Bill 24-15, which would
freeze Montgomery County's tip wage at the current $4.00/hour. Keeping Montgomery's tip
wage at $4.00 will help eliminate the confusion associated with annual tip wage increases and
avoid putting Montgomery County's full-service restaurants at an even greater competitive
disadvantage with regard to regional tip wages. At $4.00/hour, Montgomery County's tip wage
will still be higher than the frozen tip wages in the rest of Maryland and surrounding jurisdictions
(MD
&
Prince George's County - $3.63; D.C. - $2.77; VA - $2.13).
Given that tips are considered as wages, tipped employees are generally the highest hourly
wage earners in a full-service restaurant, often making significantly more than minimum wage.
Keeping the tip wage at $4.00/hour also makes it easier for full-service restaurant operators to
give raises to their non-tipped employees, which helps to reduce the hourly wage disparity
between dining room staff and kitchen staff.
To address concerns about ensuring that tipped employees make at least the full hourly County
minimum wage in combined tip wage plus tips, we also support this legislation's quarterly wage
and hour reporting requirement for employers of tipped employees to ensure compliance. This
information can be easily obtained from payroll reports.
BACKGROUND:
UNDERSTANDING TIPPED EMPLOYEES' WAGES
THE TIP CREDIT: WHY IT EXISTS
Congress has for decades defined "wages" under Section 203(m) of the Fair Labor Standards
Act (FLSA) to include not just cash, but certain other credits and benefits that employees
receive as a result of their employment, including tips.
Tip income is an important part of the wages and benefits employees receive due to
employment. In fact, tip-earning employees are among the industry's highest-earning
employees, earning a median of $12 to $17 an hour in tips, according to recent National
Restaurant Association research. Employees and employers pay taxes on tipped wages.
For these reasons, section 203(m) of the FLSA allows employers to apply a portion of the tip
earnings employees receive because of their employment toward the employer's obligation to
pay tipped employees the minimum wage. This is called taking a "tip credit." Employers may
take a tip credit only under strict conditions.
(j)
Restaurant Association of Maryland
6301
Hillside Ct Columbia,
MD 21046
410.290.6800
FAX 410.290.6882
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TIPS AS WAGES
Federal and state tax laws classify tips as wages and tax employees and employers
accordingly.
• Employees owe income and FICA (Social Security and Medicare) taxes on their tip income .
• The federal government considers all tips as wages for Social Security purposes. Employers
pay Social Security taxes on the tips employees report, and tip income is included in the
government's wage calculations for Social Security benefits.
• The federal government considers all tips as wages for Medicare purposes, and requires
employers to pay Medicare taxes on all reported tip income.
• Tips are also considered as wages for unemployment insurance purposes, and employers
are required to pay unemployment insurance taxes on reported tip income.
HOW THE TIP CREDIT WORKS
If an employee meets the definition of a "tipped employee," tip-credit law allows an employer to
credit toward the required minimum wage rate a portion of the tips received by the employee
and reported to the employer.
Current Montgomery County law allows employers to pay a tipped employee a minimum cash
tip wage of at least $4.00 an hour and take a tip credit of up to $4.40 an hour (Le., the difference
between the current $8.40 County minimum wage and the $4.00 tip wage).
If an employee's hourly tips fall below the tip credit (currently $4.40 an hour) the employer is
responsible for making up the difference by paying any additional wages needed to bring the
employee up to the required County minimum wage. Thus, a tipped employee can never be
paid below the minimum wage. In fact, paying a tipped employee below minimum wage is a
violation of federal, state and local laws.
PROTECTING EMPLOYEES
Federal, state and local wage laws provide strong protections to ensure that tipped employees
never earn less than the applicable minimum wage. Employers must meet the following
conditions in order to claim any tip credit:
1. A tip credit can be taken only against the wages of employees who customarily and
regularly receive at least $30 per month in tips.
2. In cases where an employee's tip earnings fall below the maximum permissible tip
credit, the employer is responsible for making up the difference to bring the employee
up to the applicable minimum wage.
3. The employer must notify the employee of the tip credit taken.
4. Employees must be allowed to retain all of their tips, except for valid tip pools.
5. Employers must have records documenting that employees earned tips in an amount at
least equal to the tip credit claimed.
2
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TIPPED EMPLOYEES' WAGES: MYTHS
&
FACTS
MYTH
#1:
TIPPED EMPLOYEES ARE PAID BELOW MINIMUM WAGE
FACT:
Tipped employees cannot be paid below minimum wage. The minimum wage for tipped
employees is the exact same as the minimum wage for every other employee in Montgomery
County (currently $8.40). Employers must ensure that the tipped employee earns at least $8.40
an hour (or the applicable County minimum wage) in tip wage plus tips or the employer is
responsible for making up the difference. It is not legal for any employee in the County to earn
less than the full minimum wage per hour.
MYTH
#2:
CUSTOMERS ARE SUBSIDIZING RESTAURANT EMPLOYEES' WAGES.
FACT:
Restaurant employers invest in their businesses to provide the conditions that enable
employees to earn tips. Congress created the tip-credit system and its safeguards for
employees decades ago because lawmakers recognized that tipped employees receive tips due
to the jobs their employers provide for them. Tipped employees receive additional wages in the
form of tips given to them by their employer's guests. This money is not given to other
employees. That's why federal law treats tipped and non-tipped employees differently for wage
purposes. The tip credit lets employers take tipped employees' special status into account for
purposes of meeting the employer's obligation to pay these employees the minimum wage.
MYTH
#3:
TIPPED EMPLOYEES EARN POVERTY-LEVEL WAGES
FACT:
Most tipped employees are far from minimum-wage earners. Server positions in
restaurants provide opportunity, flexibility and, often, very competitive pay. Recent
National
Restaurant Association
research shows that on a national level, restaurant servers earn a
median hourly wage of between $16 and $22, counting both tips and employer-paid tip wage.
Looking at tip income alone, entry-level servers earn a median of $12 an hour in tips, with more
experienced servers earning a median of $17 an hour in tips, according to the research.
NOTE:
These figures represent overall averages; the hourly earnings
of
servers vary significantly based
on the type
of
establishment and the average per-person check size.
MYTH
#4:
EMPLOYERS ABUSE WAGE-AND-HOUR RULES WHEN THEY PAY TIPPED
EMPLOYEES.
FACT:
There will always be a few who violate any law imposed on citizens or companies.
However, employers risk costly wage-and-hour lawsuits, significant back-pay requirements and
stiff penalties if they take a tip credit without meeting all the legal requirements for doing so.
Restaurant employers are not willing to knowingly break the law or jeopardize their businesses
by failing to take the required steps for claiming a tip credit. The vast majority of restaurant
operators follow the rules, designed as safeguards for tipped employees. These requirements
include ensuring that tipped employees earn and report tips in an amount equal to at least the
amount of the tip credit claimed, and that the employer has records to prove it. In cases where
an employee's earnings fall below the maximum permissible tip credit, the employer is
responsible for making up the difference to meet the minimum wage.
3
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3236 M Street, NW • Washington, DC 20007 • (202)
333~9180
• Fax: (202) 625-7429 • clycles.com
Support the Tipped Wage Freeze
Council
Bill 24-15
Jeff Owens
Clyde's Restaurant Group
I want to share some detailed data with you about our employees and customers to help you understand
why
it
;s appropriate to keep the Montgomery County tipped wage at
$4.00/hour.
Clyde's Restaurant Group owns and operates 14 restaurants in the Washington D.C. metropolitan area,
two of which are located in Montgomery County.
. Tipped. Employees are the Highest Earners on Staff
Today we 'have 339 employees in bur two Montgomery County restaurant operations of which 285 are
County residents and 178 earn gratuities. We always strive to staff enough servers to give them each a '
small section of tables and the opportunity to provide great service and earn a customary tip of nearly
20%. All tipped employees are required to report their tip income to us to be included in both the
employer and employee payroll tax calculations.
These tipped employees are highly skilled and provide our restaurants' most significant interaction with
our guests. When claimed tip income considered, they are the highest paid staff in the restaurant.
$18.51
per hour
. uring a recent pay period which includes the 14 days from May 13 to 26, our two locations staffed 157
D
tipped employees as servers, bartenders and bus staff. These employees worked 8,507 hours and
earned
$157,4n
which is comprised of the cash wages paid by Clyde's plus declared tip income from
gratuities. This equates to $18.51 per hoUr.
All
employees eamed more than the minimum wage.
The non-tipped departments include the seating hosts and the kitchen staff for which we staffed 128
hourly employees during this pay period. These folks worked 7,559 hours and eamed $85,965 in wages
which equates to $11.37 per hour on average. Eight of the 128 non-tipped employees are being paid the
minimum wage of $8.40 per hour with the remaining 120 at higher
~tes.
CLYDE'S OF GEORGETOWN· CLYDE'S OF COLUMBIA • CLYDE'S OF TYSONS CORNER • CLYDE'S OF RESTON. CLYDE'S AT MARK CENTER
CLYDE'S OF CHEVY CHASE • CLYDE'S OF GAil.ERY PLAq • aYDE'S WIllOW CREEK FARM • THE TOMATO PAlACE' TOWER OAKS LODG
OLD EBBITT GRUl. • EBBITT EXPRESS • THE tOMBS' 1789 RESTAURANT. THE HAMILTON
10
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The staff departments ranked from the highest to lowest hourly pay is as follows:
Earnings
$32,902.59
$19,619.00
$84,828.01
$20,127.64
$157,477.24
$42,620.67
$11,206.18
$19,309.68
$12!828.73
$85,965.46
Hours
1,517.19
1,004.10
4.485.02
1,500.90
8,507.21
3,416.27
1,019.78
1,797.09
1
1
324.01
7,559.15
Per Hour
$21.69
$19.54
$18.91
$13.41
$18.51
$12.47
$10.99
$10.74
$9.69
$11.37
Bartender
Backwait
Frontwait
Bus
Total Tipped
Cook
Host
Prep
Dish
. Total
Non~tipped
"Just raise the prices to pay the higher wages ..... "
Some might say just increase prices to cover higher wages because the dining guests will not mind
paying more. I can tell you we are very fortunate that our guests are willing to pay $15.50 for a grilled
chicken salad or $13.50 for
a
cheeseburger so that we are able
to
achieve a 2% profit margin. We work
very hard to keep up with the price sensitivity of our guests.
.
For example, when the wholesale crabmeat market became volatile during the past year we have offered
a crab cake platter priced at $26.95 and $19.95 at different points of time. For the same 26-day period in
May
2014
and May 2015, nine of our restaurants in the Washington D.C. metropolitan area sold 14,556
platters when offered at $19.95 but only sold 3.454 of the same platters when offered at $26.95.
I
urge.you to support Council
$4.00/hour.
BiII24~15
to keep the Montgomery County tipped wage at the current
Thank
you.
Jeff Owens
Chief Financial Officer
Clyde's Restaurant Group
jowens@Clydes.com
II
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Drummer, Bob
From:
Sent:
To:
Cc:
Subject:
Jenny Baker -DLLR- <jenny.baker@maryland.gov>
Tuesday, June 09,20151:08 PM
Drummer, Bob
Thomas J. Meighen -DLLR-; Kelly M. Schulz -DLLR-; Sarah Harlan -DLLR­
Expedited Bill 24-15 - Tipped Employee Amendments
Bob-
This email follows up on our conversation yesterday regarding Expedited Bill 24-15 - Tipped Employee. As we
discussed, enforcement of the minimum wage law by the Department's Employment Standards Service ("ESS")
is complaint driven. ESS accepts complaints from employees not third parties. As drafted, if Montgomery
County were to determine that there may be a violation ofthe Montgomery County tip credit, any complaint
would have to be filed by the employee and not Montogmery County.
Let us know if you have any other questions. Jenny
Jenny Baker
Assistant Attorney General
Department of Labor, Licensing and Regulation
(410) 230-6135
1
12.