On July 11th, 2024, WBUR reported that the Massachusetts Restaurant Association—the Westborough-based business interest group—had filed a lawsuit in an attempt to get a proposed tipped worker minimum wage ballot initiative blocked from this year’s election. The employer interest group is arguing that several of the signatures on the ballot petition are not valid. Here, our Massachusetts wage and hour lawyer provides a more detailed explanation of the issue.
Background: An Overview of Tipped Worker Minimum Wage Laws in Massachusetts
All employees in Massachusetts are entitled to receive at least the mandatory minimum wage. The minimum wage rate depends on whether or not a worker recipes tips. As of 2024, the Commonwealth of Massachusetts government explains that the minimum wage is:
- “$15 per hour for non-tipped employees and $6.75 per hour for tipped employees.”
In Massachusetts, tipped employees are defined as those who customarily and regularly receive more than $20 per month in tips. Understanding the minimum wage law for tipped workers is absolutely crucial for any employee who works in a tipped position. Notably, tipped workers are disproportionately, but by no means exclusively, in the restaurant industry. Here are key points:
- Base Wage and Tip Credit System: Massachusetts law stipulates a minimum base wage for tipped employees, which is lower than the standard minimum wage due to the expectation of earning tips. As of 2024, the base wage for tipped workers is $6.75 per hour. Employers can apply a “tip credit” to make up the difference between this base wage and the regular minimum wage, which is $15.00 per hour. However, if the tips plus the base wage do not meet the regular minimum wage, the employer must cover the shortfall.
- Eligibility for Tip Credit: To be eligible for the tip credit related to minimum wage, the following three criteria are met: 1) An employee must be informed about the tip credit in writing, 2) All tips claimed as credit must be proven to be received by the employees, and 3) An employee may retain all their tips except when a valid pooling arrangement is in place.
- Tip Pooling: In Massachusetts, tip pooling is legally permissible but must adhere to specific regulations. First, only employees who customarily and regularly receive tips can be included in the pool. Next, any tip pooling system cannot include owners, managers, or supervisors. Finally, the tip pooling distribution must be fair and reasonable.
- Record-Keeping Standards: Employers are required to maintain accurate and detailed records of wages and tips for each tipped employee. The Massachusetts Attorney General’s Office actively enforces these regulations. Tipped pooling violations can lead to major sanctions against an employer.
Ballot Initiative for Proposal to Raise the Minimum Wage for Tipped Worker
Some workers rights organizations are taking political action in an effort to raise wages for tipped workers. Indeed, Massachusetts is seeing a significant ballot initiative concerning the minimum wage for tipped workers. Sponsored by a group called One Fair Wage, the proposal aims to gradually increase the current minimum wage for tipped workers from $6.75 to $15.00 per hour by 2029. The initiative is designed to phase in the wage increase over several years. Notably, the measure has ignited a considerable debate within the hospitality industry, especially restaurants.
Massachusetts Restaurant Association Argues Signatures are Invalid
The initiative to raise the minimum wage for tipped workers in Massachusetts is nearing a critical point. It almost has the number of signatures from voters that are needed to qualify for the ballot. However, the Massachusetts Restaurant Association is now challenging the legitimacy of a significant number of the signatures collected by the One Fair Wage campaign group. The association has filed objections with the Secretary of State. They contend that some signatures were fraudulently obtained and that others were duplicated. It is a big deal, because it could potentially lead to the disqualification of the initiative from the November 2024 ballot.
Here is what we know: The Massachusetts Secretary of State’s office has confirmed that the number of certified signatures barely exceeds the required threshold. What does this matter? It means that a relatively small number of signatures being disqualified could actually take the ballot measure below the required threshold. If the group cannot meet the valid signatures threshold in a timely manner, it may not make the ballot in November of 2024. The campaign would need to re-start collecting signatures for the next voting cycle to try to appear.
What Happens Next: A Review of the Petition and Determination
The state ballot law commission is set to hold a hearing after July 17 to review these objections. In doing so, it will provide a forum for both sides to argue their case. The situation emphasizes the importance of the ongoing struggle between the restaurant industry, which cites economic burdens, and advocates like Saru Jayaraman of One Fair Wage, who accuse the industry of undermining democratic processes to prevent wage increases for tipped workers. The Massachusetts Ballot Commission will determine whether or not the tipped minimum wage measure will end up on the November 2024 ballot.
Why Trust Our Massachusetts Wage and Hour Claims Attorney
Wage and hour law is complicated—particularly so in the restaurant industry. At Hayber, McKenna & Dinsmore, LLC, we have the professional experience and proven legal knowledge needed to take on tipped worker minimum wage issues. If you or your family member is a tipped worker in the restaurant industry (or any other industry), who has been subject to a wage and hour violation, we are here to help. You can learn more by reviewing our client testimonials, our representative case results, and by reaching out to our Massachusetts wage and hour attorney directly with questions.
Get Help From Our Massachusetts Wage and Hour Lawyer Today
At Hayber, McKenna & Dinsmore, LLC, our Massachusetts wage and hour lawyers are proud to be strong, experienced advocates for worker rights. Victim of a wage violation in the restaurant industry? Get in touch with our team by calling (860) 522-8888 or contacting us directly online. Initial consultations are always strictly confidential and carry no obligations. From our offices in Springfield and Northampton, we are well-situated to protect worker rights in Massachusetts.