Are you tipped? This is for you. Question 5 Explained

Do you make tips at your job? Servers, hosts, barbacks, and more, this one is for you. Question 5 will impact your role in a possibly significant way if it is passed, and you should know about it.

What is Question 5?

Question 5 is regarding the minimum wage for tipped workers. The initiative, backed by the non-profit organization One Fair Wage, proposes increasing the minimum wage for tipped employees which is currently $6.75 over a period of 5 years to be equal to the state minimum wage which is currently $15.

State law already requires that tipped employees are paid the regular minimum wage in the case that the tips they earn do not bring them to the $15/hr threshold.

For example, in a 3 hour shift as a server, they would have to make $24.75 in tips in order to meet the regular minimum wage burden. (6.75*3=20.25 | 45-20.25=23.75). If this hypothetical server earned less than $24.75 in tips, the restaurant would pay out the difference.

Concerns

A substantial concern many tipped workers have with Question 5 is that they will make less money and will be forced to move to a system of tip pooling as per Section 6 of the proposed law.

Tip pooling is practice where employees pool all tips collected, and distribute them amongst all participants either equally or proportionally in accordance to a metric such as time worked, or tables served.

Currently, owners cannot require tip pooling to non-service employees, waitstaff or bartenders as per Section 152A of Chapter 149, paragraph (c) of Massachusetts General Law. Notably back of house employees such as Line Cooks do not fall under these categories. If passed, Question 5 would move to allow tip pooling for all non-management workers, provided that all employees are paid the full minimum wage (once again, currently $15/hr).

Tip pooling is progressive and ultimately takes a higher percentage of gross income from those that earn high tips to distribute to those that make less, which is why the practice is generally unpopular.

 It is important to note that tip pooling is not required if Question 5 passes, implementation of such practices remain at the discretion of the employer and establishment. 

Why does this matter?

The argument for Question 5 is rooted equity for all. All workers, regardless of occupation, should make the same minimum wage for financial stability. Under the current system the income floor for tipped workers is $15/hr. With tips many can earn up to and over $40/hr. 

Under the current system, every hour a server works, $8.75 of tips they make is actually paying them the state minimum wage. 

In the previous example a server worked for 3 hours. That server would make a minimum of $45 (15*3). If for some reason they had a slow day and only earned about $25 in tips, then all their “tips” suddenly turn into their minimum wage and they ultimately only end up earning $45.25.

If Q5 is passed, the same employee would actually earn $90.25 since all the tips they earn would be added to their minimum, instead of covering their minimum wage.

In summary, the earning potential--if everything else stays the same--of tipped employees would actually increase.

To Conclude

There are many pros and cons to the ballot measure this article hasn’t even touched on. If passed, Massachusetts could be making a well-needed step to reducing or ending aggressive tipping culture; but could also be severely harming the restaurant industry in the long-term which is dominated by small businesses.

The purpose of this article is to help you, a potentially new voter, be informed about what's on the ballot beyond the White House. It’s always encouraged that you check out a variety of publications so you can have a broad and well-rounded perspective going into the polls this November.

For direct information from the state on ballot question 5, visit VoteInMA.com or click here for the direct link to the 2024 voter information packet.