As a Portland restaurant co-owner, I support an increase to the minimum wage. However, the proposed increases to the tipped employee minimum wage in Portland will have serious consequences for our city’s economy and cultural identity.

Regardless of what the tipped minimum wage is, every employer in Maine is legally required to make sure all employees earn the full minimum wage.

If a tipped employee does not earn enough tips to make up the difference between the tipped minimum wage and the full minimum wage, the employer is required by law to make up the difference.

Tipped employees work hard for their wages and tips, but typically represent the most highly compensated restaurant employees. Increasing the tipped minimum wage is unnecessary and will further contribute to the inequity between tipped and nontipped wage earners.

Because labor costs are a major cost driver for restaurants, an increase in the tipped minimum wage to $6.35 (proposed by the Portland City Council) or to $11.25 (proposed as part of the Green Party’s November referendum) could require city restaurants to increase prices by up to 20 percent and 60 percent, respectively.

Faced with significantly higher prices, customers will patronize restaurants and bars less frequently, reducing revenue and leading to a reduction in jobs for many Portland businesses.

The neighboring communities of Falmouth, South Portland and Westbrook will benefit, as restaurateurs and customers will be drawn to areas where it is much less expensive to operate and patronize restaurants.

As a community, we have built a restaurant destination that is celebrated nationwide and has been a driving force for our local economy. “Fixing” a tipped-minimum-wage “problem” that does not exist risks real damage to Portland’s economy and cultural identity.

Raise the minimum wage. Enforce the current law. Leave the tipped minimum wage as it is.

Matthew Purington

Portland

Copy the Story Link