Watch Out New Jersey: Bad Legislation for Tipped-Wage Earners

New Jersey Assemblywoman Claire Swift, R-2 and Assemblyman Erik Simonsen, R-1 have stepped-up to oppose arguably bad legislation, which targets tipped-wage earners.

The New Jersey Assembly State and Local Government Committee discussed proposed legislation that would negatively impact New Jersey’s service industry.

It looks like one of those generally bad ideas that is not good for both the tipped-wage earner and the employer.

President Donald Trump wants to make tips tax free for American service workers. New Jersey Democrats have a different idea.

When I saw this bill, I said, 'How much more can they destroy the restaurant businesses?' Our congressional district has the most establishments and the most employees in all of New Jersey, said  Swift.

Swift received a round of applause for her vocal opposition of the measure, (Assembly bill A5433).

Here’s how it currently works:

A worker's tips for the day and the $5.62 an hour from the business must equal the state's minimum wage of $15.49.

If it comes up short, the employer must pay more to make up the difference.

The Democrat-sponsored bill that is currently under under debate would radically change that … it requires the employer to pay tipped workers a base minimum wage of $15.49 an hour regardless of much they make in tips.

Laws such as this have always resulted in employers being forced to layoff workers that they would otherwise not do.

As someone who grew up in the industry and worked through high school and paid my way through college, l've seen how careers are made," said Simonsen.

Business owners testified against the legislation yesterday, detailing how it would increase labor busts and hurt employee opportunities that would otherwise exist.

“I can't wrap my head around this bill. But, there's some real simple math for you and that's the fact that there's seven states that do it, which means there's 43 states that don't. That tells me what I need to know. We're New Jersey and let's keep it that way," said Simonsen.

This legislation would disproportionately affect areas like Atlantic City, that rely heavily on tourism.

"The timing of this bill is horrible. The price of gas is up. The price of food is up. Payroll taxes have increased. Our tourism season begins next week. We're going to do everything we can to oppose this bill," said Swift.

SOURCE: NJ Assembly GOP.