SENATE BILL: Amendment to The Productivity Equalization...Act... (Redrafted)

[TNF]

This bill will fully implement the 32 hour workweek passed by the Senate in 2011. It will also end pay discrimination against tipped employees, which currently only have a $2.13/hour minimum wage

[TNF]

Aye

[TNF]

Mr. President, would you accept a version that adjusts the pay scale gradually for tipped workers to that of the regular minimum wage?

[TNF]

A suggested timescale for those pay increases, if I may:

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[TNF]

Also as an addition in the redraft, maybe we could require gratuity, as is done at some restaurants already? This would avoid one of the key problems with tipped employment, which, of course, are deadbeats who don't tip the server.

[TNF]

My proposal:

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2. The minimum wage for tipped employees shall, upon the passage of this legislation, automatically adjust for increases in worker productivity and inflation at the same rate as does the regular federal minimum wage.

3. The scaled increase to the minimum wage for tipped employees, as noted in Section 1 shall expire on January 1, 2020 and the tipped minimum wage shall, at that point, be equalized to the regular federal minimum wage. There shall, from January 1, 2020, be no difference in the federal minimum wage for tipped and other employees.

4. From the period between January 1, 2014 to January 1, 2020, tipped employees may 'opt-out' of the compensation adjustment for tipped employees. In doing so, tipped employees shall be paid the previous federal minimum wage for tipped employees until the next scheduled increase, at which point they will be once again asked whether or not to 'opt-out' of it.
   4a. Tipped employees having opted out of the compensation adjustment schedule shall be paid a gratuity of 20 percent automatically charged on all purchases by any employer employing tipped employees foregoing the compensation adjustment schedule.
   4b. Effective January 1, 2020, the opt-out provision of this law and the automatic gratuity charge shall be terminated and all employees currently paid in tips instead paid the federal minimum wage.
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How does this look? Basically you would have to choose between the higher minimum wage or the last scaled minimum wage plus a 20 percent gratuity every time the scale went up. This gives everyone a pay raise while (hopefully) ending tipping as a practice by at least 2020.

[TNF]

That's fine if we are okay with eradicating tipped positions and moving towards the European style service charge + higher wage.

Given my crunch for time, I'd rather go with this than nothing at all. You're a lucky man, TNF.

I am quite fine with this change, Mr. President.

[TNF]

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The latter. Essentially what this says is that the minimum wage on, say July 1, 2015, will not be lower than $7.25. If increases in inflation and in productivity make it higher, that's fine; it just won't be allowed to be lower than $7.25 at that point. The existing federal minimum wage works the same way as per the Fair Labor Standards Act.

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I agree; I think that we need one or the other. I would prefer my version, but I'm all for whatever the President will sign into law here.

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The employer.

[TNF]

Excellent work, I'd deem that friendly if the President is down with it as well.

[TNF]

I'm favorable to a vote.

[TNF]

Aye