Restaurant owners, workers pleased after legislative panel backs revival of ‘tip credit'

A legislative committee voted Wednesday to restore the “tip credit” used in the restaurant industry as part of a compromise aimed at addressing the most controversial aspect of last year’s minimum wage referendum.

Read More At Press Herald.com

Members of the Labor, Commerce, Research and Economic Development Committee endorsed a bill to restore the tip credit, which allows restaurants to pay workers below the minimum wage as long as tips cover the difference. To win support from Democrats leery of changing last year’s referendum, Republicans agreed to codify how restaurant owners calculate those wages.

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