At the hearing, proponents of Bill 35-23 said it would reduce wage theft and help working families, while opponents of the bill said it would lower profits, increase prices for customers, and reduce the income that tipped employees currently earn. The bill would adjust 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 passes, there will be 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