Next Tuesday, Massachusetts residents will vote about the approval of Question 5. Question 5 is a proposal on the Massachusetts state ballot which, if approved, would slowly increase the minimum wage for tipped employees to the same as flat rate paid employees. However, the new proposal would heavily affect independent restaurants, their owners, and their employees. Devin Adams, who currently owns restaurants such as Brava, Pearl & Lime, The Drift, and Dotty’s, is one of the many independent restaurant owners who could feel the effects of Question 5. When asked about the financial impact of the upcoming ballot question, Devin described the impacts it could have on himself and other independent restaurant owners.
“What you’ll see is, instead of leaving a tip, it’ll just be a service charge. And a service charge can make things feel more expensive than they are, and some places will leave an extra space for you to tip your servers on top of that, but it makes things feel more expensive. If you were to absorb the cost, it’d raise our payroll costs almost 40%. Then, you have to find a way to account for the increase while still making a 5-10% profit margin, which essentially raises prices” says Devin Adams.
However, restaurant owners are not the only people affected by the proposition. Restaurant employees are also heavily affected, which affects teens state-wide. According to the Pew Research Center, about a third of working teens work in the restaurant business. This proposition would drastically change how restaurant employees are paid.
“The law that Massachusetts already has about tip credit is that, if you’re working a shift, and nobody comes in, you’re guaranteed minimum wage. But, it’s illegal for me to take some of your tips and say I want to tip the kitchen, because they’re non-tipped staff. What Question 5 will allow, is that, now all of the restaurant is allowed to be in the tip pool. So if you give 25% of your tips to the support staff, well now, I can say, well, since I have to give you this extra $7 an hour, you’re only going to get 10% of the tips and I’m going to take the rest and tip out the kitchen and the supports” says Devin Adams.
Restaurant employees shared similar sentiments, as Question 5 would have a drastic effect on their day to day lives. When asked about his feelings about Question 5, teen restaurant employee Reilly Cook-Booth saw the negative effects of Question 5 on himself and other restaurant employees state-wide.
“I don’t support it, the reason I don’t support it is because tips are at an all time low for everyone, and sometimes tips are better than the paycheck, and tips can feed a family more than the actual paycheck can. And if it’s passed, then expenses are going up for materials and everything in restaurants” says Reilly Cook-Booth.
With Question 5 being proposed by One Fair Wage this November, the restaurant business will be heavily affected, no matter your role in the industry. As a consumer, prices will go up, as an employee, the payroll will change, and as an owner, increases will have to be accounted for. The Question will be proposed on the Massachusetts state ballot next Tuesday, November 5, 2024.
