As Minimum Wages Rise, Restaurants Say No to Tips, Yes to Higher Prices
Back in April, Seattle raised the minimum wage in restaurants to $15 an hour. Now more cities are drafting up new proposals to raise their minimum wages as well, and restaurant owners have responded with new no-tipping policies in an effort to keep labor costs down. Some restaurant owners have added 20% service charges onto customer's bills to cover the costs. Workers who have lost their tips have said that they now receive as much money as they did before the wage increase and no longer have to worry about a slow night in the restaurant.
See "As Minimum Wages Rise, Restaurants Say No to Tips, Yes to Higher Prices", Patricia Cohen, August 24, 2015