A bill that would increase wages for tipped employees will be introduced at the Montgomery County Council meeting on Tuesday, September 19. Bill 35-23, County Minimum Wage – Tipped Employees 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.
A statewide tip credit repeal bill considered in the Maryland General Assembly failed to pass earlier this year because of strong restaurant industry opposition and scores of servers who urged lawmakers to reject it because they make significantly more money under the current tipping system. Like all workers, restaurant tipped employees must earn at least the full applicable minimum wage per hour in base wages plus tips. There is no subminimum wage for restaurant tipped employees. Under federal, state and local minimum wage laws, employers are required to make up any deficiencies if a tipped employee does not earn enough in base wages plus tips to make at least the full minimum wage.