NJ Tipped Workers to Lawmakers: Preserve Tip Wage

FOR IMMEDIATE RELEASE                                  Contact: Amanda Stone, NJRHA VP of Public Affairs
September 25, 2025                                                                                                      astone@njrha.org 

TRENTON, NJ – New Jersey’s tipped employees are sending a powerful message to Trenton – do not eliminate the tip wage system.

A new statewide survey found that a strong majority of tipped employees firmly oppose legislative efforts to dismantle the current tip wage system, which allows them to earn considerably more than the state’s minimum wage of $15.49 per hour.

Under New Jersey’s current system, tipped employees are guaranteed to earn at least the state minimum wage of $15.49 per hour. Tipped employees receive a tip wage of $5.62, and if their tips combined with the tip wage fall short of $15.49, employers are legally required to cover the difference. As a result, the current system ensures that every tipped employee must legally make at least the state minimum wage.

Melissa Gourley, who has worked in the service industry for more than 15 years, said her dream of becoming a nurse would not be possible if the current tip wage system was eliminated.

“I make nearly twice as much bartending as I did working in the ER,” said Mrs. Gourley. “The only reason I can pay for nursing school and work toward becoming an RN is because the tip wage system allows me to earn well above minimum wage."

The New Jersey Restaurant & Hospitality Association (NJRHA) mobilized over 150 tipped employees and employers last spring, including Mrs. Gourley, to testify before lawmakers in opposition to a proposal that would eliminate the tip wage. Ultimately, the proposal was changed to a discussion-only hearing at the last minute and legislators did not vote to move the bill.

Over the summer, NJRHA lead a survey of New Jersey’s tipped workforce about efforts to eliminate the tip wage. Nearly 400 servers, bartenders and other tipped employees responded.

Key Findings:

• 88% prefer the current system over a flat wage model

• 79% say the tipping system works well and should not be changed

• 83% report earning $20+ per hour with tips and base wage combined

• 82% believe eliminating the tip credit would reduce their earnings
  
  

NJRHA President/CEO Daniel Klim said the survey results, in addition to the standing-room only hearing earlier this year, leave no room for confusion on how tipped employees feel about maintaining the current tip wage system.

“This survey delivers a clear message from the very people most impacted – tipped employees want to preserve the system that lets them earn well above minimum wage,” Mr. Klim said. “Lawmakers should listen directly to these workers before pursuing changes that could put their livelihoods at risk, especially when they did not ask for this change.”

Survey participants emphasized that tipping not only has high earning potential but also provides vital income flexibility. Many expressed concern that eliminating the tip credit would lead to mandatory service charges and smaller tips.

Cory Wingerter, owner of The Tiger’s Tale in Montgomery, said his first priority is to protect his employees who would be significantly impacted if tip wage was eliminated.

“I simply could not absorb the increased labor cost that would happen instantly if tip wage was eliminated, “Mr. Wingerter said. “I would be forced to raise menu prices, cut shifts and likely eliminate jobs just to keep the doors open. Many of our employees have been with us for a long time and this change would be devastating.”

The results reflect the reality of service workers in other jurisdictions, where proposals to eliminate the tip wage have been enacted, including Initiative 82 in Washington, D.C.

“We don’t have to guess what happens when policies like this go into effect – we’ve already seen the fallout,” Mr. Klim said. “In Washington, D.C., restaurants were forced to cut shifts, reduce staff and replace tipping with mandatory service charges just to keep their doors open. Tips dropped. Servers started earning less – not more. Dozens of long-time restaurants shut down, and the warm, personalized dining experience diners love, was replaced with a colder, transactional model.”

Officials there have since paused the phase-out policy, acknowledging the harm it caused to both workers and businesses.

The full survey is available by request. Visit www.njrha.org for more information.

About the Survey

The online survey of 394 tipped employees currently working at full-service restaurants in New Jersey was conducted in June and July 2025. Nicole Bruno, Hannah McCollum, and Sabrina Amann-Ross of CorCom, Inc. assisted with this study. CorCom, Inc. is a research and consulting firm headquartered in Pittsburgh, PA, and founded by Dr. Lloyd Corder, who also holds faculty appointments at Carnegie Mellon University and the University of Pittsburgh.