EPI Applauds Withdrawal of Tip Credit Elimination Bill in Montgomery County

  • Publication Date: January 2024

Arlington, Va – On January 16, Montgomery County Council member Will Jawando announced he would withdraw his bill to eliminate the tip credit countywide. The Employment Policies Institute applauds this decision, due to its potential to harm Montgomery County’s restaurant employees’ jobs and livelihoods.
In response, EPI’s director of research Rebekah Paxton released the following statement:

“Employees across Maryland, including last fall in Montgomery County, turned out in droves to oppose tip credit elimination legislation after seeing this harmful experiment play out in neighboring Washington, D.C. State and county lawmakers should continue to listen to the concerns of local restaurant employees to avoid the job-killing, tip-slashing consequences of any future proposals to eliminate tip credits.”


Economists and employees alike reject this policy as a way to help tipped restaurant employees. Research indicates that eliminating tip credits causes earnings and job losses for restaurant employees, and forces businesses to shut down. Substantial research finds:

Last year, Maryland tipped employees testified before state Senators, urging them to reject a statewide proposal to eliminate the tip credit and protect their tips instead. Neighboring Prince George’s County also tabled the proposal after hearing tipped employees testify. To read more about how the tip credit works and why employees are fighting to preserve it, see EPI’s tip credit primer here.