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Massachusetts might increase the minimum wage for tipped workers over the next five years from $6.75 per hour to the statewide minimum wage — $15 dollars per hour — if voters approve Ballot Question 5 on Election Day.
Tellingly, many affected workers are far from enthusiastic about the proposal. In interviews with The Crimson, waiters and other tipped workers expressed concerns that the change would result in lower wages and fewer tips. Some even feared the measure would cost them their employment.
Their concerns are well placed: The average restaurant enjoys profit margins of less than five percent. Raising the minimum wage will only squeeze margins lower on account of higher labor costs. Who eats the difference? Unless tipping habits substantially change — which we believe is unlikely — restaurants will need to raise prices, depressing demand, until restaurants are forced to lay off staff.
In the two years following the passage of a similar measure in Washington, D.C., full-service restaurants lost 1,800 jobs, a startling indication of the measure’s effect.
When economics and common sense align, we should listen to those who know the industry best. Vote “no” on Ballot Question Five.
This staff editorial solely represents the majority view of The Crimson Editorial Board. It is the product of discussions at regular Editorial Board meetings. In order to ensure the impartiality of our journalism, Crimson editors who choose to opine and vote at these meetings are not involved in the reporting of articles on similar topics.
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