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Update from Maine Innkeepers Association on Minimum Wage Increase Question 4
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30 October 2016

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MEIA 28 October 2016

Following are excerpts from an information bulletin sent to members by the Maine Innkeepers Association on 28 October:

"As you know there are several important referendum questions coming up on November 8th. Perhaps the most important to the hospitality industry is Question 4 - commonly referred to as the "minimum wage" question. We are not opposed to an increase in the minimum wage, but this question raises the rate "Too far and too fast." In addition the most onerous part is the elimination of the tip credit. Under Question 4, the tipped wage for servers will increase over several years until it reaches parity with the general minimum wage, an increase of 260%."

"Yesterday, both the Bangor Daily News and the Portland Press Herald ran stories about a Portland restaurant owner implementing a new 18% service charge in lieu of tipping, ostensibly in response to these proposed server wage changes..."

"We all understand that if the measure passes, restaurants will be forced into operational changes, and possibly increased menu prices or job losses. But, after meeting with the Maine Department of Labor and our attorneys we would advise you against implementing a strategy similar to the one explained in these articles. Their opinions confirm our view that you can add a general service charge in a banquet or club setting, but if a service charge is added to an individual customer's restaurant bill then this is considered a tip, and must go exclusively to the server."


David Boggs President/CEO ACRO Global|Publisher Tourism Marketer
David H. Boggs
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ACRO Global
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