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Restaurant association says the industry will suffer from a minimum wage increase

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The National Restaurant Association is urging Congress against implementing the Raise the Wage Act, which would raise the federal minimum wage to $15 an hour.

The association wrote a letter to congressional leadership Tuesday requesting Congress remove the act from the $1.9 trillion stimulus plan. They warned that restaurants would suffer from a wage boost amid the coronavirus pandemic and cited results from a February survey polling 2,000 restaurant operators, who said that the increase would lead to job losses, higher menu prices and restaurant closures.

The survey found that 82% of restaurant operations say the initial wage increase would negatively impact the ability of the restaurant to recover from the coronavirus pandemic.

“The survey results make it crystal clear that the restaurant industry and our workforce will suffer from a fast-tracked wage increase and elimination of the tip credit,” Sean Kennedy, Executive Vice President of Public Affairs for the National Restaurant Association, wrote in the letter. “Restaurant jobs will be critical to every local community recovering from the pandemic, but the Raise the Wage Act will negate the stimulative impact of a worthy plan.”

Kennedy continued, “Passage of this bill this year would lead to job losses and higher use of labor-reducing equipment and technology. Nearly all restaurant operators say they will increase menu prices. But what is clear is that raising prices for consumers will not be enough for restaurants to absorb higher labor costs.”

The Raise the Wage Act, which Sen. Bernie Sanders (I-Vt.) introduced last month, would also eliminate the tipped minimum wage for restaurant service workers.

“Eliminating the tip credit will hurt millions of servers who rely on the current system where they earn between $19-$25 an hour with tips,” Kennedy wrote.

Kennedy understands the minimum wage issue in America, but thinks the Raise the Wage Act is “the wrong bill at the wrong time.”

“We share your view that a national discussion of wage issues for working Americans is needed,” Kennedy said, “but the Raise the Wage Act is the wrong bill at the wrong time for our nation’s restaurants.”

Follow Annaliese Levy on Twitter @AnnalieseLevy

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Economy

Biden’s 60 Minutes Interview Horrifies White House: ‘Does NOT Reflect the OFFICIAL Position’

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Uh oh. Someone let President Joe Biden speak by himself again and damage control immediately ensued. President Joe Biden’s “60 Minutes” interview which aired on CBS Sunday was 60 minutes of pure torture for viewers and 60 minutes of pure angst for the White House; everyone but the president himself.

60 Minutes’ official Twitter account publicly called out the President’s answers with an embarrassing statement that his own administration was in disagreement with him:

“President Biden tells 60 Minutes that U.S. men and women would defend Taiwan in the vent of a Chinese invasion. However, after our interview, a White House official told us that U.S. policy on Taiwan has not changed.”

CBS’ Scott Pelley also discussed inflation; an issue drastically affecting the welfare and wellbeing of families. Biden deflected with zero sympathy:

As for President Biden’s son Joe, he is sticking with the narrative that Hunter is the “smartest” person he knows and that “there’s not a single thing that I’ve observed at all that would affect me or the United States relative to my son Hunter.”

Biden also said that while the “proof of the pudding is in the eating” in response to being asked if he is fit to be President, Biden did not commit to saying whether or not he will run for re-election. His “intention” is to run again, “but that’s just intention” he said. “Is it a firm decision that I run again? That remains to be seen.”

 

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