Preserving the Tip Credit

The tip credit and tipping system provide tipped employees with greater earning potential and restaurant owners the ability to invest in their non-tipped employees and businesses.

Eliminating the option of the tip credit and tipping system would force restaurant operators to switch to an hourly wage system, reducing earnings, hours, and jobs for employees. 

Restaurant employees, operators and customers nationwide support the existing tip credit and tipping system. The existing system provides strong worker protections and helps tipped workers earn a median of $27 an hour, with some tipped workers making $41.50 an hour in take-home pay. Eliminating the tip credit would not be a pay raise for tipped workers.

The restaurant industry urges Congress to protect prosperity for restaurant workers and operators by preserving the tip credit and tipping system.