An effort to increase the server cash wage to $3.57 an hour passed late yesterday in the Senate. Despite testimony from DRA members, the Senate voted 11-8 for the increase. Senator Peterson accused the industry of paying below average wages citing false data that servers who earn well above minimum wage must then “tip out” bringing them down to minimum wage income. Sam Calagione, DRA Chairman of the Board and Dogfish Head Brewery owner stated that this was false and not seen in the industry. Under no circumstances does the IRS require a server to report someone else’s income.  Kevin Davies, Iron Hill Brewery owner testified that his company would stand to lose almost $250,000 if the increase were to pass.
To calculate your increase, restaurants need to calculate how many hours they pay out a year for servers and multiply by the $1.34 increase.
SB284, sponsored by Karen Peterson (D-Stanton) will now head to the House. Members are urged to contact their Representative in the House as well as Speaker of the House, Terry Spence who heads the House Labor committee. For more information contact the DRA at 302-738-2545.