
Waiters and waitresses in Greater Williamsburg could see a dip in their income if a proposed federal rule takes effect.
The U.S. Department of Labor proposed a regulatory change on Dec. 5, 2017 that would allow restaurant owners to dictate how tips are divided if they pay serving staff the federal minimum wage of $7.25 per hour, according to the proposal.
For area restaurateurs and their trade associations, it’s a question of economic parity among workers.
Waiters are often the highest-paid workers in a restaurant, according to Williamsburg Area Restaurant Association President Noreen Graziano. That means non-serving staff, such as dishwashers and cooks, don’t always earn a fair amount of money, according to Graziano.
“[The] Bottom line is wages should be fair for all,” Graziano wrote in an email.
Under current law, servers can be paid $2.13 per hour, but they must make at least the federal minimum wage after tips. It’s currently illegal for restaurants to create a “tip pool” — meaning gratuities earned by waiters are pooled and distributed among other restaurant staff, including non-waiters.
The proposed rule would allow employers to use tips as they see fit, if the restaurant pays workers the minimum wage and do not take a tip credit. It would also allow employers to create a “tip pool.”
In addition, restaurant owners and managers could participate in a tip pool, so long as servers make the federal minimum wage, according to the proposal.
The proposed rule has not been finalized. The public comment period ended on Feb. 5.
Still, there are hundreds of restaurants in Greater Williamsburg, employing thousands of food- service workers, according to the Bureau of Labor Statistics.
In Greater Williamsburg, servers generally earn between $2.13 and $4.07 per hour in wages before tips, according to Graziano.
For Virginia Restaurant, Lodging & Travel Association President Eric Terry, it’s a bit about giving dishwashers and cooks their fair share.
It takes a team to make a restaurant operate properly, Terry said. “This would allow everyone on the team to share the success of the restaurant.”
Terry’s organization strongly supports the proposal, according to an email.
For Williamsburg Economic Development Authority chairman and restaurateur Adam Steely, changes in the Williamsburg restaurant scene are unlikely.
Even if the proposed regulation were implemented, he doubts many businesses in the area would consider changing their tipping practices for waiters.
“I don’t foresee that most of the people in the service industry would take advantage of paying their employees minimum wage because those employees are highly skilled, very experienced,” Steely said.
“Those business owners need that skill set to run a successful business.”
Without good tips, servers won’t stick around, Steely said.
“I don’t think [businesses] would be able to retain those employees if they were to remove the opportunity for them to make good money,” Steely said.
Correction: This story originally misreported the amount that employers would have to pay servers under the new proposed rule.
To contact the reporter, email steve@localvoicemedia.com.