Grace McGovern, a server and bartender at a brewery in downtown Boston, is also actively involved in supporting One Fair Wage. This organization is behind a November referendum aimed at gradually raising the wages of tipped employees until they reach the state minimum wage by 2029. McGovern’s dedication to this cause exemplifies her commitment to advocating for fair compensation in the service industry.
Grace McGovern, a 24-year-old bartender and server at a downtown Boston brewery, vividly remembers a recent encounter with a particularly rude customer.
The night was quiet, and she had only one table to attend to. It was a large group, led by a man who made her uncomfortable by continuously touching her lower back and leg and cracking inappropriate jokes, as she shared with Stateline.
She felt a sting of annoyance, but she plastered a smile on her face and joined in his laughter, fully aware that the bulk of her earnings for the evening depended on the gratuity he and his friends would leave.
McGovern has transformed her frustration into action as she passionately supports a referendum that aims to increase the hourly wage for tipped workers to meet the standard minimum wage.
According to McGovern, the state organizer for One Fair Wage, a national nonprofit aiming to eliminate pay below minimum wage, even if the referendum passes, men will still be creepy. However, she expresses relief that she will no longer have to rely on their money to earn a full minimum wage for the day.
In Massachusetts, most workers are entitled to a minimum wage of $15 per hour. However, tipped workers receive a minimum wage of $6.75 per hour, as long as their tips bring their total earnings to at least $15 per hour. With the proposed ballot measure, employers would be required to pay all workers a minimum wage of $15 per hour, while still allowing tipping.
The Massachusetts Restaurant Association, along with some servers, opposes the proposed measure. According to restaurateurs, implementing it would result in increased costs and potentially force them to shut down their businesses. On the other hand, some waiters argue that it would actually lead to a decrease in their earnings.
Several states will have referendums on the ballot this November regarding wages and benefits. While measures to raise minimum wages are generally well-received, the ones in Massachusetts and Arizona are controversial because they also impact tipped workers, leading to significant opposition. Additionally, proposals in Alaska and Missouri face opposition as they would not only increase state minimum wages but also require paid sick time.
In California, there is a ballot question aiming to raise the minimum wage from $16 to $18 per hour by 2026. Meanwhile, in Oklahoma, a citizen initiative to increase the minimum wage has gathered enough signatures to be included on the ballot. However, a challenge is expected to prevent its placement.
Presidential candidates Kamala Harris and Donald Trump have made a pledge to abolish federal taxes on tips, sparking a discussion on the issue of “tipped wages.” This has also drawn attention to the wage referendums, potentially impacting voter turnout in crucial states like Arizona.
Wages impact everyone, which is why it remains a prevalent topic of discussion.
Landon Jacquinot, a policy analyst for the National Conference of State Legislatures, emphasized the importance of addressing the issue at hand.
Arizona is considering a ballot question that could potentially result in lower wages for tipped workers. Presently, businesses in Arizona are permitted to pay tipped employees $3 less than the state’s minimum wage, which is currently set at $11.35 and adjusted for inflation. If the proposed measure is passed by voters, employers would be allowed to pay tipped workers 25% less than the minimum wage, which equates to $10.77 per hour at the moment. However, it is important to note that the workers’ compensation, including tips, must still total at least $2 more than the hourly minimum wage.
A political action committee named Raise the Wage Arizona, which supports raising the minimum wage, has taken the ballot initiative to court. They argued that the title of the initiative, the Tipped Workers Protection Act, was misleading. However, the Arizona Supreme Court dismissed their claim and decided that the initiative can remain on the ballot.
As per the National Conference of State Legislatures, a total of 34 states, territories, and districts have set their minimum wage standards higher than the federal minimum wage of $7.25 per hour.
According to Landon Jacquinot, policy analyst for the National Conference of State Legislatures, ballot initiatives aimed at increasing the minimum wage are usually successful. Jacquinot explains that when the cost of living is on the rise, people simply want to stay afloat. In an interview, he stated, “people just want to keep up.”
“Its popularity stems from the fact that wages have an impact on everyone. Whether or not you personally work a minimum wage job, chances are that someone in your community or even someone close to you does. We can all relate to the experience of working a minimum wage job and wishing for a higher income,” he explains. “It’s a universal sentiment – the desire to earn more money.”
Gretchen Shelgren, a bartender at Mamma Mia’s restaurant in Plymouth, Massachusetts, opposes the referendum as she believes it would reduce her income.
For 12 years, she was employed in Bellingham, Washington, where all workers are subject to a uniform minimum wage. Since 1998, the wage has been adjusted for inflation, and thanks to a ballot initiative in 2016, it surged from $9.47 to the present $16.28 per hour.
According to Shelgren, the system negatively impacted her tips, causing her to receive only 10%-12% instead of the standard 15%-20%. She noted that customers tend to tip less when they are aware that their server is already earning the state minimum wage.
A 2020 study conducted by Michael Lynn, a professor of consumer behavior and marketing at Cornell University, seems to support her argument. According to the study, states with higher tipped minimum wages experience lower average tip percentages in restaurants. However, they also see higher average tip percentages in coffee shops.
According to the study conducted by Lynn, it is important to note that while the data only show a correlation and do not establish a cause-and-effect relationship, they do provide support for the notion that increasing the wages of tipped workers can lead to a decrease in the percentage of tips received by these workers.
Shelgren expressed her concern about the potential decrease in her current earnings, which are already more than three times the minimum wage in Massachusetts.
Shelgren, 51, expressed her satisfaction with her current lifestyle as a single person. She has been able to earn a good income and raise her son while enjoying the flexibility of working on her own terms. However, she is apprehensive about the potential challenges that may disrupt this quality of life.
Massachusetts state Senator Patricia Jehlen, a Democrat, introduced a bill in the previous year that aimed to accomplish the same objectives as the ballot issue. However, the bill did not successfully pass through the legislature. Senator Jehlen believes that the ballot measure has a higher likelihood of achieving its desired outcome.
In an interview, she stated that the public shows greater support for it compared to the legislators. The legislators seemed hesitant to tackle the issue of the minimum wage in 2024, particularly considering that it was recently increased to $15 per hour in 2023.
In Missouri, the proposed ballot measure aims to increase the current minimum wage of $12.30 to $13.75 by 2025, and further to $15 per hour by 2026. Additionally, the measure would mandate employers to grant one hour of paid sick leave to workers for every 30 hours worked.
Business groups, especially those representing small companies, argue that the sick leave provisions will create a less favorable environment in Missouri compared to neighboring states.
In Alaska, the minimum wage referendum consists of three key components. Firstly, it aims to increase the current minimum wage of $11.73 to $15 per hour by 2027. Additionally, it mandates that employers offer workers the opportunity to accumulate sick leave. Lastly, the referendum seeks to prevent companies from penalizing employees who choose not to attend employer-sponsored meetings related to political or religious matters.
In an interview, Joelle Hall, president of the Alaska AFL-CIO union, highlighted the need to increase the minimum wage in Alaska. She emphasized that the high cost of living in the state makes it crucial to address this issue. According to Hall, Alaskans consistently show strong support for raising the minimum wage whenever it is brought up to them.
According to her, there is a lack of earned sick leave in the state, a fact that was highlighted during the COVID-19 pandemic. In regards to company meetings, the union attempted to pass a similar measure through the legislature but was unsuccessful. Instead, they decided to take their case directly to the people.
In an interview, Kati Capozzi, the president and CEO of the Alaska Chamber, expressed opposition to the ballot issue primarily due to concerns beyond the minimum wage. She stated that if the focus was solely on wages, it is uncertain whether the Alaska Chamber would take a definitive stance on the matter.
According to Capozzi, the sick leave provisions may pose challenges, especially for small businesses in the food service or tourist industries. She pointed out that many small tourist-related businesses run seven days a week, often within a limited season.
“It’s a brief, 90- to 100-day season,” she explained. “Small businesses operate on narrow profit margins, and imposing these regulations on them puts them in a vulnerable position.”
Stateline, a part of States Newsroom, operates as a nonprofit news network. It is supported by grants and a coalition of donors, functioning as a 501c(3) public charity. Stateline maintains its editorial independence. If you have any questions, please feel free to contact Editor Scott S. Greenberger at [email protected]. Stay updated with Stateline on Facebook and X.
