STATEMENT: Opposition to Tip Credit Elimination in Maryland
Publication Date: March 2023
This afternoon, the Maryland Senate Finance Committee will hear public testimony on S.B. 803 to eliminate the state’s tip credit and raise Maryland’s tipped minimum wage by more than 300 percent.
Employment Policies Institute’s director of research Rebekah Paxton will testify to present data on the damaging consequences of this bill. Among the damage tip credit elimination has brought to other states, Rebekah’s testimony will cover:
- Three out of four American labor economists agree tip credit elimination results in lost jobs for tipped restaurant workers;
- Elimination of Maryland’s tip credit could cost nearly 7,200 tipped workers their jobs; and
- For families of tipped workers, tip credit elimination could cost them up to $8,000 a year in household earnings.
Additionally, the Employment Policies Institute has released a primer on the negative impacts caused by tip credit elimination as well as employee movements to save the tip credit system.
The hearing will take place today, March 2nd at 1:00 pm. Tune into the live stream here.
Rebekah Paxton released the following statement ahead of the hearing:
“Those directly affected by tip credit elimination are leading the charge to oppose it. Tipped restaurant employees and small business owners have pushed to stop similar proposals across the country and reverse this harmful legislation. The economic data is on their side: eliminating the tip credit system kills jobs, limits tips, and forces restaurants to close. Maryland legislators should take note.”