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California Bill Could Cost Tipped Workers Minimum Wage Increase

A proposed bill could be a game-changer for low-income service workers, says San Francisco wage and hour lawyer Eric Grover.

05/20/2015 // Keller Grover LLP // (press release)

San Francisco, CA—A bill sponsored by the California Restaurant Association (CRA) has many low-income service employees worried because if it passes, it could cost them the minimum wage increase that was voted upon in Oakland, San Francisco and San Jose, reports San Francisco wage and hour lawyer Eric Grover of the Keller Grover law firm.  

Assemblyman Tom Daley (D-Anaheim) introduced Assembly Bill 669, which would limit minimum wage owed to the state’s tipped service workers to $9 per hour, if their total income reaches $15 hourly. But what has low-income service employees worried is passage of that bill that could result in the loss of the minimum wage increase that was approved by voters last November, Capital & Main first reported.

The bill states, “This bill would supersede local minimum wage laws unless the local law contains specified provisions” and:

This section shall preempt local ordinances setting forth a minimum wage in excess of the minimum wage established by this subdivision, to the extent the ordinance is applicable to qualifying tipped employees, unless the ordinance specifically references this section and states the local jurisdiction’s intent to establish a higher minimum wage for qualifying tipped employees.

“What lawmakers and the CRA are not taking into account is that tipped workers do not make a lot of money in tips. There are many slow days where tips are low. It’s not fair to stop tipped workers from making at least the same minimum wage that the rest of the city’s low-income workers are benefiting from,” explains Grover. “In addition, tipped workers go beyond the restaurant industry. This will affect employees like barbers and nail technicians, who don’t receive the volume of tips that restaurant workers do.”

Oakland voters agreed to increase the city’s minimum wage to $12.25 per hour, while San Francisco increased it to $15 per hour and San Jose raised theirs to $10.15 per hour.

For more information

Media Information:

Phone: 415.659.9937
Url: Keller Grover LLP

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