Tina Smith: “since I have been a U.S. Senator, I have been an advocate of what is known as the tip credit. I have always urged for…”

“since I have been a U.S. Senator, I have been an advocate of what is known as the tip credit. I have always urged for the tip credit to be included in increases in the minimum wage. In no way have I done this to try to lower someone's wage, but to try to help employers and restaurants to keep their doors open and increase job growth. We are debating, among other things, the minimum wage-death tax compromise. It has come to my attention that some of our friends in the Chamber are trying to construe the tip credit in a way that I believe is very tortured and, frankly, very wrong. So I have come to the Chamber today to try to explain and alleviate anybody's fears as to what the effect of this law is to be. Let me make clear what the language of the bill is. It says: A worker cannot be paid less than the cash wage paid such employee which is required under such law, ordinance, regulation, or order on the date of enactment. So what employees are receiving under their State laws is what they will continue to receive. As a minimum wage increase goes into effect, the current wage level will be the floor. If a State, such as my State of Oregon, currently has a minimum wage of $7.50 an hour, this amount will be the wage the employee receives. No one's wage will go decrease. Yet, some are suggesting that if a State does act, or if a court misunderstands the statute, then tipped employees' wages will be lowered. That is not the intent of this tip credit provision.…”