Massachusetts rejects raising minimum wage for tipped workers
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Massachusetts voters rejected a measure to raise the tipped minimum wage from $6.75 an hour to $15, according to the Associated Press.
Why it matters: The measure would have shaken up tipping culture in Massachusetts and raised questions about its effects on restaurants and top-earning waiters and bartenders.
Driving the news: The opposition was in the lead 64%-36% shortly before 1am Wednesday when AP called the race.
Zoom in: Restaurants who lobbied against the measure say the state dodged a bullet by voting it down.
- Waiters and bartenders said they would have lost wages if people stopped tipping as a result of the wage increase. They also opposed sharing their tips with chefs, dishwashers and other workers.
- Business owners said at worst, they'd lose workers and struggle to pay the higher wages, even though they could charge a service fee to cover the costs.
What they're saying: "Tipped workers and the independent restaurant community have triumphed," said Nancy Caswell, treasurer of Massachusetts Restaurants United and owner of Brine in Newburyport.
- "We keep the power in the hands of individual servers and bartenders who work tirelessly day after day to service guests across the commonwealth to the best of their abilities."
Between the lines: The measure also would have expanded tip pools to chefs, dishwashers and other back-of-house workers.
- The difference in take-home pay between top-earning waiters and the cooks making the food can be stark in some eateries.
Follow the money: Opponents of Question 5 raised more than $2.1 million and spent $1.6 million in 2024 to defeat the measure, per state campaign data and AdImpact. Most of the spending was on broadcast ads.
- Proponents raised $500,000 and spent roughly one-tenth of that, per state campaign data.
More from Axios: See more local and statewide election results ...