Federal Legislative Update/Minimum Wage & Tip Credit

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There is a very real threat of a $15 federal minimum wage increase and tip credit elimination at the federal level. Legislators in DC are trying to tie wage increases into the current proposed COVID relief package (Biden has pitched a $1.9 trillion proposal that includes a round of $1,400 stimulus checks, more help for state and local governments, funding for vaccines and schools, and a boosted unemployment benefit).

But it’s unclear whether the entire bill could survive arcane Senate rules that determine what does and does not, qualify under reconciliation. The budget process allows for bypassing the 60-vote legislative filibuster but also places limits on what can be included. Read more here and here.

Legislative Update – Delaware
Please familiarize yourself with the following legislation which has been introduced in Delaware.  Legislators are on break now but will reconvene in March.
We will be activating an aggressive campaign to fight an increase in the cash wage as we know the further devastating effects this would have on our restaurants.
HB 94 – Proposes to increase cash wage to a percentage of the minimum wage (65% – which if min wage stays at $9.25 in DE would raise cash/tipped wage to $6.01 per hour). Full bill details here.
HB 88 – Elimination of the training wage. Full bill details here.
HB 1 – Continuing Alcohol to-go and expansion of outdoor premise.  Passed House vote and on to Senate where it is expected to pass. Full bill details here.
HB 65 – Would return unemployment rates for businesses back to 2020 levels (no increase) and would allow those receiving unemployment to forgo state taxes on unemployment benefits. Full bill details here.