Question 5 fails, maintains tipped minimum wage for tipped workers

Voters shoot down effort to raise tipped minimum wage

California voters rejected a ballot measure that would have raised the minimum wage for tipped workers.

Question 5, which was on the Nov. 8 ballot, would have raised the tipped minimum wage from $15.50 to $18 per hour. It would have also eliminated the tip credit, which allows employers to pay tipped workers less than the minimum wage if they earn enough in tips to make up the difference.

The measure was opposed by the California Restaurant Association and other business groups, who argued that it would have raised costs for restaurants and led to job losses. Supporters of the measure, including labor unions and worker advocacy groups, said it would have helped to improve the wages of some of the lowest-paid workers in the state.

The measure failed by a margin of 58% to 42%. It was the only statewide ballot measure to be defeated on Election Day.

The defeat of Question 5 means that the tipped minimum wage in California will remain at $15.50 per hour. The tip credit will also remain in place.

The tipped minimum wage is a controversial issue in many states. Some argue that it is unfair to pay tipped workers less than the minimum wage, while others argue that raising the tipped minimum wage would hurt businesses and lead to job losses.

The California Restaurant Association estimates that raising the tipped minimum wage to $18 per hour would have cost the industry $3 billion per year. The association also said that it would have led to the loss of 100,000 jobs.

Supporters of raising the tipped minimum wage argue that it would help to improve the wages of some of the lowest-paid workers in the state. They also argue that it would reduce poverty and inequality.