Restaurant experts criticize previous Biden tipping policy 

Industry experts argue for universal tipping policy, but disagree on what the policy looks like for service workers.

Written by: Hannah Campbell

This article was written live on Capitol Hill. The article was a part of coursework for the Reporting on Public Affairs course at American University.

Restaurant industry experts told a Congressional subcommittee today that the nation needs a universal tipping policy, but disagreed on what the policy would look like.

Multiple experts criticized the Biden administration’s previous policy, that has been thrown out by courts, on hourly wages versus tipping for service workers. Experts argued raising the minimum wage has caused many restaurant closures.

Simone Barron, co-founder of the Full Service Alliance, advocates for the freedoms of those in the service industry along with the organization. She said the restaurants that remain are “forced to reinvent the wheel by changing how they do business,” with increasing minimum wages.

Earlier this year, the Biden administration attempted to raise pay for tipped workers to $7.25 an hour if their non-tipped work exceeds 30 minutes or longer. Non-tipped work would include rolling silverware and restocking areas throughout the restaurant.

Multiple experts argued employers could abuse the policy by over assigning workers these tasks, which would cut workers’ time earning tips.

“This rule restricted the amount of time tip employees could spend on non-tip tasks, creating unrealistic and unnecessary burdens,” Tom Boucher, on behalf of the National Restaurant Association, said.

Barron said raising the minimum wage has actually hurt restaurants in her area because of rising costs.

“Our opportunity to maximize our income under a traditional tipping structure is being stripped away, and this pushes tip workers to make minimum wage while raising the cost of living for all of us,” Barron said.

The rule was struck down by the U.S. Court of Appeals last month.

Tipping policy for service workers has been a heavily discussed issue for both presidential candidates Kamala Harris and Donald Trump in an attempt to attract votes.

Both Boucher and Barron noted Trump’s proposed plan for tipped workers that would eliminate taxes on tips and argued it could help the issue of wages.

However, Saru Jayaraman, president of One Fair Wage, said the Trump administration’s approach to the policy was “an attack to tip workers.” The organization advocates for workers to be paid a full and fair minimum wage, as well as tips.

“[It] was the most egregious thing that any administration had ever done to tip workers,” Jayaraman said.

Jayaraman argued raising the minimum wage would provide economic stability for service workers, rather than solely relying on tips to make a living.

“I would challenge anybody here to try to live on $2.13 an hour,” Jayaraman said. “Tips depending on whether they like [customers] like your smile or like the way you behave or your body.”

While industry experts still defer on what the best policy is, all agreed the industry needs to be improved for service workers to survive.

“I live in Seattle, where these policies have absolutely devastated us, and more is coming,” Barron said.