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Ideas!. Dealing with a Higher Minimum Wage A Diverse Industry.

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Presentation on theme: "Ideas!. Dealing with a Higher Minimum Wage A Diverse Industry."— Presentation transcript:

1 Ideas!

2 Dealing with a Higher Minimum Wage

3 A Diverse Industry


5 The Change that Keeps on Changing

6 Impact on Jobs

7 Large Employer

8 Small Employer

9 Training Wage

10 Youth Wage

11 Summer Work Travel Wage August 1, 2014$7.25 August 1, 2015$7.50 August 1, 2016$7.75

12 Proposal for a Tipped Tier Coalition and partners working on recognizing tips as income for over 20 years Proposal for a tipped employee tier came close in 2013-14 session Major effort to pass this in 2015 $8.00 an hour for those earning $12 an hour or more with tips and wages

13 Survey: Adjustments to $9.50

14 Pricing Menu prices – across the board or targeted Room rates – ROH or targeted Meeting room charges AV charges Service charge levels

15 Operational Ideas Change the Format Close on a slow day or days Hosts? When and how many? Dining room teams – who does what Tighter schedules Housekeeper schedules Testing technology

16 Service Charges "Gratuities" means monetary contributions received directly or indirectly by an employee from a guest, patron, or customer for services rendered and includes an obligatory charge assessed to customers, guests or patrons which might reasonably be construed by the guest, customer, or patron as being a payment for personal services rendered by an employee and for which no clear and conspicuous notice is given by the employer to the customer, guest, or patron that the charge is not the property of the employee.

17 Service Charges Clear and Conspicuous Notice Employee education and buy in Employees will be explaining this to guests! Policy for using the service charge Be prepared for social media

18 Credit Card Fees MR 5200.0080 “Where a tip is given by a customer through a credit or charge card, the full amount of tip must be allowed the direct service employee minus only the percentage deducted from the tip in the same ratio as the percentage deducted from the total bill by the service company.”

19 Section 7 ( i)Overtime Exception Hotels, motels and restaurants may levy mandatory service charges on customers which represent a percentage of amounts charged customers for services. If part or all of the service charges are paid to service employees, that payment may be considered commission and, if other conditions in section 7(i) are met, the service employees may be exempt from the payment of overtime premium pay.

20 What Else Are You Considering for Dealing with Increasing Labor Costs?

21 651-925-4011

22 Thank You!

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