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A Montgomery County council member, Will Jawando, has decided to withdraw Bill 3523, which aimed to incrementally raise the tipped minimum wage each year until it phased out completely by 2028. According to a statement from Councilman Jawando’s office, the withdrawal is intended to shift focus towards state-level policies that would better support tipped employees.
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Introduced last year by Jawando and Councilmember Kristin Mink, Bill 3523 proposed increasing the current tipped minimum wage of $4 per hour for Montgomery County workers by $2 annually until it aligned with the county’s standard minimum wage. Tipped employees, as defined in the bill, are those who earn $30 or more monthly from tips alone. If their tips fall short of the new $15 minimum wage, the employer is required to cover the remaining hourly wage.
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Critics of the bill, including the Restaurant Association of Maryland, welcomed the decision to withdraw. They argue that eliminating tip credits would compel employers to absorb higher labor costs, potentially leading to increased prices for customers or the inclusion of a service charge. Concerns have been raised that customers might be less inclined to tip on top of a service charge, affecting overall compensation for tipped workers.
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Notably, a similar bill has been reintroduced in the Maryland State Assembly, indicating that discussions around tipped wages and associated policies continue at the state level. The withdrawal of Bill 3523 marks a strategic shift in approach, redirecting attention toward broader state policies to address the concerns and support the interests of tipped employees in Montgomery County.
source: The DMV
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