Earlier this year, state legislators proposed a bill to eliminate New Jersey’s current tip credit system, which would raise the base wage for tipped restaurant workers from $5.62 an hour plus tips up to $15 per hour. In a newly released survey, one thing is clear: New Jersey tipped workers don’t want the current system to change, and potentially take away their tips or jobs.
The New Jersey Restaurant & Hospitality Association (NJRHA) conducted a survey of nearly 400 tipped workers from restaurants in the state over the summer, and found:
- 89% of workers prefer New Jersey’s current tip credit system that allows them to count tips toward the minimum wage, compared to a flat hourly wage hike.
- 79% say they believe it works well for them and their livelihoods, and does not need to be changed.
- 83% say under the current tipping system, they make from $20 to $40 an hour through their tip income and base wage.
- 82% say the believe eliminating New Jersey’s tip credit would reduce their earnings.
According to an NJRHA press release, many responses indicated that not only does the current system provide high earning potential, but also comes with flexibility.
This new data is more evidence that tipped restaurant workers – whose income would be most affected by the scheme to eliminate New Jersey’s tip credit – oppose the proposal. Earlier this year, over 150 tipped workers testified before New Jersey legislators to voice their concerns.
To hear some local workers’ perspectives on the bill, see EPI’s compilation video here:
Currently, the bill is stuck in the state House labor committee.