Forcing Restaurants to Pay Servers More Will Cost Everyone: New at Reason

You don’t often hear someone arguing against a pay raise. But that’s exactly what many servers and bartenders across the country are saying: They’re ok with their current hourly wage, so long as they can keep their tips.

Come June, servers in Washington, D.C., might be out of luck if Initiative 77—a proposal that aims to eliminate the tip credit—passes at the ballot box. Restaurant owners in the district currently pay waitstaff $3.33 an hour, well below the minimum wage, with the expectation that they will earn the rest (and sometimes much, much more) in tips. If gratuities fall short, existing law dictates that employers must make up the difference. Even so, the initiative would require D.C. restauranteurs to increase base pay to the prevailing $15 minimum wage, writes Billy Binion.

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