BIG WIN for all restaurant servers as tip credit bill dies in Maine House

Without objection from House Republicans or Democrats, LD 410 is defeated

STATEHOUSE – Maine House Republicans and House Democrats joined forces today to defeat LD 410 – An Act To Eliminate the Subminimum Wage for Workers with Disabilities and Agricultural and Tipped Workers. The bill would have eliminated the tip credit reinstated two years ago at the behest of restaurant servers and their Republican allies. The tip credit allows tipped workers, who earn half the minimum wage, to earn the rest of their salary with tips. It also allows many restaurant owners to remain in business.

The tip credit was eliminated as part of a 2016 referendum that increased Maine’s minimum wage. More than 100 servers turned out at a 2017 public hearing, on what was LD 673, to urge that the tip credit be reinstated.

“House leadership had the good sense to indefinitely postpone this bill without objection,” said Assistant Republican Leader Trey Stewart (R-Presque Isle). “Maine restaurant industry and other small businesses are already reeling from the steep minimum wage increases that went into effect. Servers have been spared from having to take another day off from work to travel to Augusta to defend their right to earn a living wage.”

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