Proposal exempts tipped workers, but offers tax credits for modest earners in return.
Long John Silver's employee Antwon Brown, 31, wears a shirt advocating for higher wages during a protest outside a Long John Silver's restaurant, Thursday, May 15, 2014, in Atlanta. Calling for higher pay and the right to form a union without retaliation, fast-food chain workers in Atlanta protested Thursday as part of a wave of strikes and protests in 150 cities across the U.S. and 33 additional countries on six continents.
In an interview, Blessing said the likelihood is that the minimum wage organizers will gather requisite signatures to make the ballot. And if that happens, it will probably pass. The restaurant association, he said, persuaded him against a $15 minimum wage for tipped workers on the theory it might actually depress net pay that well-tipped servers earn after gratuities. Employers must, by law, ensure workers’ wages after tips meet the minimum wage standard.
Blessing’s bill would also allow Ohioans to claim a “refundable” tax credit of up to 9% of the federal EITC, which can produce a cash credit. If recipients have a dependent under 3 years old, that figure increases to 12%. The size of the federal credit varies by household size and income. “But by the same token, the acknowledgement that we need a higher minimum wage and a refundable EITC … we’re glad to see that’s out there and getting some attention,” he said., a universal $15 an hour minimum wage will directly boost salaries for 470,000 Ohio workers earning less. It will also indirectly benefit those earning up to $17.25, whose payscales will likely increase as well. Three in five people whose pay will go up are women.
The Ohio Restaurant Association declined to make an official available for an interview, but backed Blessing’s bill in a statement. The slower rollout, the association said, would leave small businesses more time to adjust.
Lou-Blessing Minimum-Wage Earned-Income-Tax-Credit
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