Getting Rid of TIPs

Posted April 4, 2015
By Clay Cerny

 

Daily Kos reports that Ivar’s Fish Bar, a seafood restaurant chain in Seattle, will stop taking TIPs from customers and raise its employees’ minimum wage to $15 per hour. Of course, they will have to raise prices, which many critics of an increased minimum wage claim will kill small businesses. Not really. The price increase will be 4%, which is much less than most customers would leave as a tip. Rather than paint this as a situation where one or more parties lose, it’s a win-win for all concerned. Employee get a raise. Customers pay less. Finally, the business earns good will with its customers and employees. Ivar’s Fish Bar shows that American businesses can pay a living wage.