County Council to Withdraw Bill That Would Have Raised the Minimum Wage to $15 for Tipped Employees

On Saturday, January 14, Councilmember Will Jawando issued a statement announcing that the County Council will be withdrawing  Bill 35-23, County Minimum Wage – Tipped Employees, which would have adjusted the calculation of the minimum wage for tipped workers and phase out the tip credit amount under the Montgomery County’s minimum wage law.

Currently, businesses are required to pay servers $4.00 per hour; if a server does not make the current minimum hourly wage ($15-16.70) per hour, employers are required to make up the difference. If the bill had passed, there would have been incremental increases over the next five years:
• $4.00 per hour, until July 1, 2024;
• $6.00 per hour, effective July 1, 2024 until July 1, 2025;
• $8.00 per hour, effective July 1, 2025 until July 1, 2026;
• $10.00 per hour, effective July 1, 2026 until July 1, 2027; and
• $12.00 per hour, effective July 1, 2027 until July 1, 2028

Earlier this week Maryland lawmakers introduced similar legislation that would raise the minimum wage for tipped workers at a state level.

Full statement below:
“On Tuesday, Jan. 16, 2024, at the request of the bill sponsor, the Montgomery County Council will take action to withdraw Bill 35-23, County Minimum Wage – Tipped Employees, and Bill 34-23, County Minimum Wage – Wage Commission – Established.

Councilmember Jawando co-introduced Bill 35-23 with Councilmember Kristin Mink to lead the discussion in Montgomery County on addressing subminimum wages for tipped employees. Bill 34-23, introduced by Councilmember Jawando, would create a wage commission that includes business and employee interests to evaluate the minimum wage in the region and advise the Council.

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.

The action to withdraw the bills is in coordination with other regional partners who are advancing similar measures to focus on state policy to support tipped employees. Advocates are hopeful that the Governor and General Assembly will take decisive action on this critical issue and champion the cause of economic fairness in our state.”