Senate votes to reinstate tip credit minimum wage, House vote is pending
Senate Republicans were joined by some Democrats in voting 23-12 Wednesday to repeal the part of the state minimum wage law approved by voters last November that gradually increases the minimum wage for tipped workers until they eventually are paid at the same level as other workers.
Maine Public reported that all 18 Republicans in the Senate voted for the measure, with five Democrats joining them in the preliminary vote.
The measure now goes to the House of Representatives, where Democrats hold a slim majority, but Maine Public reported that it may not be enough to block passage of the bill sponsored by Sen. Roger Katz, R-Augusta.
Gov. Paul LePage is expected to sign the bill if it passes in the House.
Under the new minimum wage guidelines that took effect in January, the state's regular hourly minimum wage went from $7.50 to $9, which will be followed by a $1 rise per year until it reaches $12 in 2020. After that, the minimum wage will be adjusted in regards to the consumer price index. The tipped minimum rose from $3.75 to $5 and will reach the regular rate by 2024.
The Maine State Chamber of Commerce and the industry-affiliated Restaurant Workers of Maine supported the restoration of the tip credit, while the Maine People's Alliance was among those in opposition.
In April, Sen. Shenna Bellows, D-Manchester, the lead Senate Democrat on the Joint Standing Committee on Labor, Commerce, Research and Economic Development committee, called on fellow lawmakers to “respect the will of the voters” and protect the new minimum wage law from any roll-back efforts.
Bellows said seven states, representing roughly one in five Americans, have no sub-minimum wage for tipped employees.
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