PHILADELPHIA (KYW Newsradio) — The economic fallout from the COVID-19 pandemic has prompted some Philadelphia restaurants to drop tip-based wages for employees.
Pat O'Malley, the owner and chief baker at Fitz and Starts, believes the pay scale between front-of-the-house wait staff and back-of-the-house kitchen workers is totally unfair. During last summer's shutdown, he decided to even the playing field and pay all his workers a base pay of $15 per hour.
”I just decided that now was the time to address it because we were going through this rebirth anyway," said O'Malley.
He explains that part of his new business plan is sharing the workload among all the employees at the restaurant in the Queen Village neighborhood.
"We should all be able to spread around these responsibilities in a way that's fair," he added. "What you're doing, whether it's cooking eggs, sweeping the floor or making a coffee drink, shouldn't define how much you make.”
The restaurant's website explains that they add a 20% service fee on each purchase.
One Fair Wage RAISE Director Mikey Knab says paying a fair wage benefits not just the worker, but the entire system.
"The restaurant industry workforce relies on public assistance at higher rates than any other industry in the country," said Knab.
"We boast seven of the 10 lowest-paying jobs every single year, and that‘s because of the subminimum wage. Our workers use food stamps at twice the rate of the next highest industry.”
Restaurants across the country, including a number from the tri-state area, recently signed on to a letter to Congress. The letter calls for passing the Raise the Wage Act, which would eliminate the sub-minimum wage for tipped workers.