How Does the Higher Minimum Wage Impact on Restaurant’s Tipping Policy in Seattle and Employers and Employees’ Perspective?

Abstract

In 2014 the Seattle Office of Council, Seattle minimum wage ordinance announced that the city would implement minimum wage requirement $15 to be phased in over five years. This study examines the impact of Seattle’s new higher minimum wage ordinance on tipping policy in the restaurant industry and identify different perspectives between employers and employees regarding the law’s implementation. To gain their perspectives, this research identified areas in Seattle that contains significantly different restaurants owners and workers. Anonymous interviewees responded over the phone or in person. The survey did not include interviewees’ name, nor did it record respondents, gender, and age. The survey collected information on approximate tipped wage and the brief location of the neighborhood. Using data from a survey, the research describes changes in tipping policy in restaurant industries as well as the services system. The research describes how work-life quality has changed for minimum tipped-wage employees and key decisions by restaurant owners to save the money or make a profit in light of minimum wage requirements.