Montgomery County councilmember withdraws bill on tipped minimum wage

Montgomery Co. councilmember drops bill to increase tipped wages

A Montgomery County councilmember is withdrawing a bill that would increase the tipped minimum wage every year, phasing out the county’s tipped minimum wage by 2028.

MONTGOMERY COUNTY, Md. - A Montgomery County councilmember is withdrawing a bill that would increase the tipped minimum wage every year, phasing out the county’s tipped minimum wage by 2028.

The bill by Councilman Will Jawando was withdrawn this week in an effort to "focus on state policy to support tipped employees," according to a statement from Councilman Jawando’s office.

"Every worker, regardless of their occupation, deserves to earn a wage that acknowledges their value and dignity. The two-tiered wage system undercuts this foundational belief by institutionalizing lower pay for certain classes of workers," a statement from Jawando’s office read.

Bill 3523 was introduced last year by Jawondo and Councilmember Kristin Mink. It would have phased out Montgomery County’s tipped minimum wage by increasing the current $4 an hour that tipped workers are paid by their employers by $2 every year until it reached the county’s current minimum wage. Tipped employees in Montgomery County are defined as employees who make $30 or more each month from tips alone.

Should their tips not total the new $15 minimum wage, the rest of their hourly wage is covered by their employer.

The move to withdraw was applauded by critics of the bill, such as the Restaurant Association of Maryland. Currently, there is a similar bill that has been reintroduced in the Maryland State Assembly.

"We have seen legislation in the General Assembly for five years and it’s always been rejected, because lawmakers hear from servers and restaurant operators who don’t want it. It has not succeeded. We will again defeat that legislation this year," Melvin Thompson of RAM said Wednesday.

Critics have suggested tip credit elimination would force employers to cover the increased labor costs, which would then be offset by increasing prices for customers or including a service charge. The concern is that customers would be less likely to tip on top of a service charge.

A woman FOX 5 spoke with said she once worked as a server and shared the concerns.

"It keeps the drive there," she said, referring to tips. "I think the tips should stay because it really enforces customer service too. It may take customer service away."

Amir Haji of Rockville worked as a server in 2021 and said while he sees the critics’ point on potential price increases, it could also add stability for servers and other employees who depend on tips.

"Sometimes you’re left with $50 at the end of the night. Sometimes you’ll get lucky. Somebody will tip you good and even after payout, you’ll be well off for the night but it’s a coin flip," Haji said. "I think especially now, tip culture is kind of getting rejected as people understand that it shouldn’t be on them to tip even though that’s what servers make and they’re dependent on it."