SAINT PAUL, MN – A bill authored by State Representative Jim Davnie (DFL – Minneapolis) was heard in the Job Growth & Energy Affordability Committee. House File 402 would protect servers from having bank processing fees deducted from tips given by customers through debit or credit cards. The measure comes as roughly 80% of customers pay for meals through credit and debit cards rather than cash. Nine other states and many major cities have modernized their laws around earned tips.
“This is about putting more money in the pockets of working Minnesotans and preserving the relationship between customers and customer service,” said Davnie. “When you tip your server, you’re thanking them for good service. The server shouldn’t be required to subsidize the cost doing business for the restaurant.”
House File 402 is part of the Working Parents Act, a package of bills presented by the Minnesota House DFL aimed at providing greater opportunity and economic security for millions of Minnesotans. It stands in stark contrast to a “Tip Penalty” bill proposed by Rep. Pat Garofalo (R – Farmington) that would allow restaurants to pay tipped employees less. “I think people send us to the Capitol to figure out ways to increase economic security for families, not ways to lower their wages.”
The bill was laid over for possible inclusion in an omnibus bill.
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