SB 221 would eliminate the longstanding “tip credit” provisions under Connecticut’s minimum wage law. Policymakers have said they are concerned that individuals who make tips as part of their regular income (bartenders, waiters, etc.) are making sub-minimum wages and this legislation is needed to raise their pay. 

This “One Fair Wage” change is both unnecessary and likely to be harmful to the very people it is supposedly intended to help. 

Connecticut state law already requires all workers to make the minimum wage. If, for instance, a worker at your local diner earns less than the minimum wage over a pay period, their employer is required to make up the difference in their pay.  

Furthermore, most employees in tipped occupations earn far more than the minimum wage. As the Connecticut Restaurant Association’s testimony on SB 221 notes, the average income for a server at Connecticut restaurants makes $33 per hour and the average bartender makes $38 per hour. 91% of those surveyed made in excess of $20 per hour, well above the state’s minimum wage. 

“One Fair Wage” raises questions about the fairness of the policy. An analysis from the Harvard Business School concluded that every $1.00 increase in San Francisco’s tipped minimum wage is associated with a 14% increase in the likelihood of median-rated restaurant closure. Moreover, a study by Cornell University revealed that states with higher tipped minimum wages generally experience lower average tip percentages compared to those with lower tipped wage requirements.    

If SB 221 were to become law it is very likely that these salaries will come down, profit margins will decrease for businesses across our state, small businesses will close, and employment opportunities will be lost.