Last November, the Maine State Legislature voted to raise the minimum wage for restaurant servers. Then in mid-June, they voted to lower it back down.
And lots of Maine’s restaurant workers were thrilled.
The minimum wage for tipped workers in Maine is half that of the state’s regular minimum wage ($9). It’s called the “tip credit” rule, as it allows employers to take a credit of up to 50 percent from their employees’ wages, because servers will generally make that money back (and hopefully more) in tips. If tips and wages, together, don’t equal the state’s minimum wage, employers are required to make up the difference.
But, at November’s referendum, the Maine House voted to raise the minimum wage by $1 each year (through 2024) and to remove the tip credit rule entirely, meaning that all employees — tipped or not — would be earning the state’s minimum wage, reports the Portland Press Herald.
Originally published by Fox News.