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.
The bill’s lead sponsors are Councilmembers Will Jawando and Kristin Mink. Per Montgomery County, “The tip credit represents an amount of the minimum wage a worker is expected to receive in tips. The current amount of the credit is the hourly minimum wage minus four dollars or a lesser credit if the employee or representative of the employee satisfies the Executive Director of the Office of Human Rights that the employee receives a lesser amount in tips. The limit and phase-out of the tip credit would be staggered over multiple years as proposed in the legislation.”