Mo. House bill caps waiter base pay

The bill's purpose is to keep restaurants open and protect jobs.

By Pierce Courchaine

Published May 4, 2009

As minimum wage continues to rise in Missouri, tipped workers across the state could see a cap in their base pay.

A bill passed in the Missouri House would raise the base pay for employees receiving tips from $3.53 to $3.63 this summer, but would restrict any further minimum wage increases for tipped workers.

Rep. Timothy Jones, R-Eureka, who sponsored the legislation, said the goal of the bill is to leave the base rate of pay for servers to the employer's discretion, and ultimately help restaurants stay open longer.

If the bill is passed, and a server does not meet the state's minimum wage when their base hourly wage and tips are combined, their employers would have to pay the difference.

Jones said busboys, cooks and kitchen workers are among those getting their jobs terminated or not receiving pay raises because of restaurants' inability to turn a higher profit margin.

The Missouri Minimum Wage Law, which went into effect in 2007, raised the state's minimum wage according to changes in the Consumer Price Index. This year, the minimum was raised to $7.05 for non-tipped workers, and will rise to $7.25 in July.

"It's crippling our industry," Jones said of the base pay for servers. "Employers are making cuts in other areas."

Missouri Restaurants Association chief executive Bob Bonney said between 2007 and 2008 was the only time the restaurant industry saw a net loss of jobs.

"This bill will provide relief to the industry while the economy is under stress," Bonney said.

Bonney, a former waiter, said because of the number of hours restaurants are open and the small profit margins, they are very difficult businesses to run.

"We are in favor of the bill because we think it will allow more restaurants to stay in business," Bonney said.

Junior Channing Osborne works as a waitress at Willie's in Columbia. She said she doesn't agree with the bill.

"When I first saw the minimum wage I was like, 'Wow, that's not that much money,'" Osborne said. "But, I get paid every two weeks and it turns out to be a lot."

Osborne makes $4 an hour not including tips and has been working at Willie's since July 2008. Osborne said she thinks the bill would not affect her pay during the summer because of the outdoor seating at the bar, but she said during the winter months it's harder to make money from tips.

UM-St. Louis graduate Kyle Geiger has been a server at a Red Robin restaurant in St. Louis for more than three years. He said the legislation would only discourage other people from entering the restaurant industry.

Bonney said the bill, which passed out of a Senate committee Thursday, is good for college students.

"If I were a college student, I would be in favor of this bill because it would maximize the number of jobs available," Bonney said. "It would allow restaurants to prosper and new jobs created."

Regardless of whether the bill passes, the National Restaurant Association doesn't predict the industry to lose jobs.

According to a report, the NRA expects a 7.2 percent job increase in Missouri by 2019, which would be 19,800 more jobs in the industry. In addition, the NRA predicts Missouri restaurants to generate $8.4 billion in sales in 2009.

Bonney said if the bill did not pass it would mean trouble for Missouri's restaurant industry.

"There will be more closings if the economy stays the same and if we don't provide some relief," Bonney said. "If you put employers out of business, you can't help employees."