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IN AND AROUND THE CAPITOL
Restaurant owners lobby
By Richard Borreca and
state for higher tip credit
Rosemarie Bernardo
Star-BulletinThe meal was great, the service was superb and the tip you gave reflected both.
End of story?
Not at the state Legislature, where lawmakers want to raise the state's minimum wage to $5.75 and slightly increase the tip credit.
The tip credit is the difference between the minimum wage and the amount paid to waiters and waitresses who regularly get tips. In Hawaii, restaurant owners can pay those workers 20 cents less than minimum wage.
But across the mainland it is dramatically less. Many states require tipped employees to get only 50 percent of the minimum wage.
Waiters and waitresses in Washington, D.C., for example, get $2.23 an hour. Those in New Jersey are not required to be paid anything -- everything they earn comes from tips.
Hawaii's restaurant owners aren't so concerned about the minimum wage as they are hoping for an increase in the tip credit, said Pat McCain, executive director for the Hawaii Restaurant Association.
"The tip credit is a recognition that these folks aren't minimum wage earners, they will get gratuities," McCain said.
The average tipped waiter or waitress gets between $10 and $15 a hour so the minimum wage is a small part of the actual salary, McCain said.
He suggested that if the Legislature wanted to help those at the bottom of the wage scale, raising the minimum wage would be a boost, but it would also help restaurants to change the tip credit.
"It would be an indication for our support for the business community," he said.
Alfred Vollenweider, owner of Alfred's at Century Century, explained that even small changes in salary costs will show up as increases in menu prices.
"A tip is no longer considered a tip. It is almost expected in a good restaurant that you will add at least a 15 percent tip," he said.
"And the restaurant prices are set to calculate in that 15 percent," he added.
Laura Macaluso, a waitress at Assaggio-Mililani, said, "Any increase would be beneficial."
Joe Sanara, a waiter at Nick's Fishmarket, said it's long overdue for waiters to get a wage increase.
"The cost of living is so high here and the wages are low," said Sanara, who's been a waiter at Nick's Fishmarket for two years.
The House Labor and Public Employment Committee has already approved a bill to raise the minimum wage and move the tip credit from 20 cents to 22 cents by 2002.
But the House Finance Committee changed the bill so the tip credit won't take effect until 2003.
You can track bills, hearings and other Legislature action via: Get involved
The Legislative Reference Bureau's public access room, state Capitol, room 401. Open 8 a.m. to 6 p.m. Monday to Friday, and 8 a.m. to 2 p.m. Saturday. Phone: 587-0478; fax, 587-0793; TTY, 538-9670.
Neighbor islanders, call toll-free and enter ext. 70478 after the number:
Big Island, 974-4000; Maui,
984-2400; Kauai, 274-3141;
Molokai and Lanai, 468-4644.
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