Compensation: Pandemic forces restaurant industry to rethink wages, tip credit

Abstract

This article introduces the recent trend of how the pandemic has changed the wage system of the restaurant industry. Especially in terms of the labor wage, it is time to rethink to change its system. After the breakout, restaurant employees are considered essential workers which means putting themselves in a risky work environment toward the spread of the virus. Chipolte, Starbucks, and Shake-Shack already have started to pay extra for their front workers. Also, it is getting intensified about tip credit since it is difficult to get tips for workers due to 'to go only' policies and limited in-dining. Since not all states have simultaneous policies about tips those opinions are different; pro-tips owners think this makes it possible for workers more profits while others who are not favor of tip credit say that it might harm the wage equity of workers.