SALISBURY, Md.- Restaurants on the Eastern Shore of Maryland are rallying against a proposed law across the bridge in Montgomery. Some like Bill Chambers with the Salisbury Area Chamber of Commerce believe if it is passed in Montgomery County, there is a high chance of the law being proposed state wide.
The law would phase out tip credit. Currently, tip workers are paid about $4 an hour, with tips expected to reach or exceed minimum wage. Those pushing for the legislation argue that for many servers, their tips do not reach minimum wage.
Montgomery County Councilmember Will Jawando says if passed, this change would level the playing field.
“43 states and the federal government persist with this legacy of slavery, allowing for a tip workforce that is close to 70% female and disproportionately black and brown women to be paid a sub-minimum wage,” said Jawando.
On the Eastern Shore, Julia Dibler is a server at the Sage Diner. She says she supports this bill.
“I think that is wonderful. We have been unpaid for way too long,” said Dibler. “We live day to day to feed our children and pay our rent. We don't have paychecks to count on. We live day to day. We've been underpaid for too long.”
However many restaurant owners are pushing back on the bill, including Bill Chambers with the Salisbury Area Chamber of Commerce.
“It's going to change the restaurant industry, period. You won't have full service restaurants. Restaurant owners won't be able to afford servers," said Chambers. “We’re working with the Maryland restaurant association, we’re working with the state chamber of commerce and we the Salisbury chamber have reached out to all of the local chambers in Montgomery county to give them a lot of the information that I’m sharing as well as let them know how they can get involved and get ready to show up at the October hearing to hear their voices.”
Jeremy Norton, one of the owners of Roadie Joe's in Salisbury says he believes passing this bill state wide would be an up-hill battle.
"It’s a big change from the industry standard,” said Norton. “Change is hard. We would immediately have to raise prices by 18-20 percent just to cover that.”
Server Mathew Brown from Market Street Inn says he thinks it would backfire for servers.
“That kind of eliminates the whole working and serving people. You can make more money with tip than you could with minimum wage,” said Brown.
There is a public hearing in Montgomery County on October 10 at 1:30.
