Aug 6, 2025 3 min read

Don’t fix what’s not broken

This is in response to Kent James’ op-ed advocating for the elimination of the tipped wage in favor of a mandated “living wage.” While Mr. James’ concerns may be well-intentioned, his assumptions about the restaurant industry and how wages work are fundamentally flawed and misleading.

Mr. James claims that those working in establishments like bagel shops are earning “minimum wage or close to it.” That’s simply not accurate. Most of these jobs – often filled by young people entering the workforce – pay well above the minimum. For example, employees at a local fast-food restaurant are averaging over $12 an hour, and my 15-year-old granddaughter works two part-time jobs earning more than that. While Pennsylvania’s legal minimum wage is $7.25, it’s largely irrelevant – market demand drives wages far above that figure in nearly every sector of food service.

I know many independent restaurateurs in our area, and across the board, we pay our hourly (non-tipped) staff over $15 an hour – often significantly more. Line cooks, for instance, are earning between $18 and $25 an hour, depending on experience and location. We do this not because we’re forced to, but because we value our employees and want them to succeed. Good staff are the backbone of any successful restaurant.

Mr. James also asserts that “servers aren’t getting rich on tips,” implying they’re struggling to make ends meet. That’s another mischaracterization. In Pennsylvania, the median take-home pay for a server – when combining base wage and tips – is approximately $27 per hour. A recent state survey found that 87% of tipped employees support the current system and believe it should not be changed.

Critics often highlight the $2.83 tipped minimum wage, but they ignore how the system actually works. Employers are legally required to ensure all tipped employees make at least the standard minimum wage of $7.25. If tips don’t make up the difference, the employer must. And now, thanks to a recent law (which I personally do not support), tipped workers don’t even pay taxes on the first $25,000 in tips.

Yes, there are underperforming restaurants and servers who struggle, but that’s true in every profession. We should not overhaul an entire compensation model that rewards performance and provides flexibility just because a small percentage of employees or businesses fall short.

Furthermore, raising wages through legislation carries real economic consequences. Every additional $1 in wages required $3 in revenue to pay for it. We need only look at Washington, D.C., which eliminated the tipped wage in favor of a mandatory living wage. The results have been devastating:

An estimated 3,700 jobs lost;

A $11.8 million decline in tipped income;

73 restaurant closures;

A 47% drop in dining-out frequency;

Widespread consumer frustration over mandatory “service fees”;

32% of local diners now travel to Maryland or Virginia for more affordable options;

44% of casual restaurants expect to close in 2025;

85% plan to reduce staff.

Is this really the model we want to emulate?

The current tipping system works. It rewards great service, gives staff the ability to earn well above average hourly wages, and provides restaurants with the flexibility needed to stay competitive. Restaurateurs are not like corporate retailers; we consider our staff family, and we invest in their well-being because it benefits everyone. If there were a better model, we wouldn’t need a government mandate to adopt it – we’d already be using it.

Let’s not try to fix what isn’t broken.

Michael Passalacqua

The writer owns Angelo’s Restaurant in North Franklin.