Restaurants need a new recipe for wages and menu prices

“If tips don’t bring a worker’s hourly pay up to $13—not uncommon at cheap eateries, nail salons and car washes—the employer must make up the difference. But enforcement is difficult; low-wage workers are afraid to file complaints. A single, more easily enforced base wage is a better way to level the playing field so that law-abiding businesses are not undercut by competitors who shortchange staff. Some dishonest or marginally profitable places would close, creating opportunities for establishments that offer decent pay and working conditions. But the tipped wage must be phased out slowly to give owners and customers time to adjust.”

Read full article here.

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