INDIANAPOLIS — President elect Joe Biden is proposing to raise the minimum wage to $15 an hour and end tipped minimum wage.
Typically servers make a lower wage and then rely on tips to make more money. The president of the Indiana Restaurant and Lodging Association said this has the potential to completely change the restaurant industry, how restaurants look, the service, and what’s on their menus.
Potentially servers could get the $15 an hour plus whatever tips they make. Or restaurants might go the opposite way and decide to ditch tips altogether.
“So what you’re gonna see is, you’re gonna see potentially the loss of hospitality jobs, as well as in many cases, servers making less because we may go to a non-tip model as well,” Patrick Tamm, president of the Indiana Restaurant & Lodging Association said.
Tamm said this is a concern. At the same time, the association is encouraged by Biden’s plans for additional pandemic relief.