Photo: Madison Rogers/WBZ NewsRadio
BOSTON (WBZ NewsRadio) — Bostonians should double-check their receipts after dining out, as they may notice an additional charge labeled as a "living wage fee."
Also known as a "kitchen appreciation fee," some eateries are adding extra service charges to help offset the rising cost of living amidst stagnant wages. In Massachusetts, the minimum hourly pay for tipped employees is $6.75 per hour, provided that their earnings amount to at least $15. If the total rate for the employee doesn't equate to at least $15 per hour by the end of their shift, the restaurant is required to pay the difference. Restaurant owners appear to want to pass some of the difference on to the customers.
"I think it's very unfair," said one Bostonian.
The additional fee, which can range from 18 to 20% of the total bill, is due to not only the low minimum wage but also low-profit margins and increasing overhead costs. Owners view the fee as a method to close the pay gap and provide sustainable living for employees. However, customers may perceive it as a way to circumvent tipping.
"They're going to end up hurting the wait staff in the long run. People are not gonna want to leave an extra tip," said one local resident.
Service charges in the state are heavily regulated under the Massachusetts Tip Act. According to the statute, any service charges collected by the employer must be distributed to the wait staff or bartenders. Despite the transparency, many restaurateurs believe the additional fees won't be well-received by future patrons.
"I'm going to look for that now. I think it's really going to hurt the whole restaurant industry," said one Bay Stater.
WBZ NewsRadio’s Chris Fama (CFamaWBZ) reports.