Minnesota restaurants can't bear new minimum-wage burden

  • Article by: David Burley
  • Updated: March 4, 2013 - 8:24 PM

The Affordable Care Act amounts to a hefty raise for employees. We cannot afford another.

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theruntMar. 4, 13 6:38 PM

I would like to have seen stated in the article how many employees are fulltime, and what the health insurance cost was last year for each of these. To compare. Because it seems hard to believe Mr. Burley wasn't paying at least $1600 for health insurance per fulltime employee last year.

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fwallenMar. 4, 13 6:59 PM

Burley is correct and he missed one problem. Servers already make much more than the line cooks that actually make the fine meals that result in larger tips. There can be a tip credit plan that puts guarantees in place for servers, but if a server isn't making at least $10 an hour in tips alone they will notblast long. Most make much more. The state had better be careful or the industry will find ways to succeed with fewer servers, or no servers. "living wage" talk is not reality. Most making the current minimum are students and others with no skills who don't provide enough benefit to warrant more.

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ebenezerMar. 4, 13 7:04 PM

I am a former major fast food restaurant executive. Speaking from more than 30 years of experience, I can comfortably say restaurants can afford to pay their staffs more, and that includes health care coverage. The restaurant industry today is plagued by the same get-rich-quick overnight attitudes that beset many other businesses. At a moderate cost "eating establishment", I am expected to pay a tip equal to or greater than the cost of an entree', and tip on the tax besides. Many times, that is the equivalent of more than $100.00/hour. It doesn't happen with me anymore. I figure a fair hourly wage for the job and time I am attended, and tip accordingly. Meanwhile, many restauranteurs are living in million-dollar homes and driving $100K cars...while they whine about paying employees a fair wage. It is inappropriate and an insult to good working staff.

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brotherkennyMar. 4, 13 7:07 PM

Not everyone making a minimum wage receives tips to supplement their wages. The legislature could define categories of labor that would be exceptions, for instance, wait staff who's effective wage earned with tips exceeds the minimum wage. I am under the impression that farm labor is already not subject to the minimum wage requirements.

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pitythetoolsMar. 4, 13 7:20 PM

Servers in other states make $1.80 - $2.50 an hour and tips are the real wage of these servers. It is time for Minnesotans to quit tipping since our servers already make minimum wage. After all, it is a non-skilled job and minimum wage is more than enough.

But, the real reason the DFL wants to raise minimum wage for servers is so that the state can collect more income taxes. When tips are the servers income the state cannot collect taxes from the servers. Now the state is assuming that servers make 15% of the restaurants revenue and take their minimum wage as payroll taxes. It really is nothing more than a scheme by the DFL to rake in more money.

Quit tipping - start taxing. Teach them all a lesson.

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endothermMar. 4, 13 7:24 PM

The writer claims that his servers are actually making $24 dollars an hour with tips. That may technically be true, but I have always found this sort of argument to be dishonest accounting. Some employees get lots of tips, and others do not. And no matter how much they get, it is NOT the customer's job to pay wages to your employees through tips. You are counting on the generosity of your customers and claiming it as your own.

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endothermMar. 4, 13 7:47 PM

The author claims that his servers actually make $24 dollars an hour with tips. That may be, but I don't think employers should get to claim customer tips as wages. Claiming the customer's generosity as your own is insulting to both the customers and the employees.

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goferfanzMar. 4, 13 8:15 PM

No, it is new taxes and mandates galore. I think it is safe to say that if we had smart people in political office, things would have improved long ago. Alas, the best and brightest no longer seek political office in this hyperpartisan era.

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orpheus90Mar. 4, 13 8:21 PM

Pitythefools writes: It is time for Minnesotans to quit tipping since our servers already make minimum wage. After all, it is a non-skilled job and minimum wage is more than enough ... Oh yeah? And in what fantasy world is minimum wage enough to get by on? And Fwaller writes: Most making the current minimum are students and others with no skills who don't provide enough benefit to warrant more ... I think were seeing a theme in some of the posts here, namely, let's gin up our own little caste system and label the lowest wrung - low wage workers - as untouchables. The we can make their lives as miserable as possible and do it with impunity because their lives don't matter.

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thebigoneMar. 4, 13 8:42 PM

If guys like this would treat their help better it will cost a little more. Just like the price of food, if it goes up, raise your prices a few cents.... This type of business is not cost controlled for the customers, they will eat out. If you put good people in your establishment and pay them a fair wage, and serve good food...a few cents increase on the menu makes no difference. Quite whining and be human.

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