This month, the approximately 8,800 Alaskans making minimum wage receive a pay raise. About half of them earn tips in addition to their hourly wage working in bars, restaurants and hotels.

The truth is, tipped workers make a lot more than minimum wage. And they should -- it's hard work, and when they provide excellent service, they earn more.

So how much more?

Alaska CHARR members around the state tell me their employees make $20, $30 or $40 per hour in tips, and some quite a bit more. Many in our industry wonder why the Alaska Legislature and the unions think it is important to give a 50-cent-an-hour raise to tipped employees who are making over $50,000 per year. Recognizing this, Alaska CHARR is proposing a new wage structure for tipped employees via House Bill 240, which we spent nearly a year crafting with the help of legislators and our members.

Here's what we're proposing: Tipped employees will earn a paid wage of at least $7.75 per hour, which is the current minimum wage. If an employee also makes at least $7.25 per hour in tips, an employer would be able to freeze the paid wage at $7.75 when the minimum wage goes up in the future. An employee will be guaranteed at least $15.00 per hour before their employer can opt out of future minimum wage increases. That's equivalent to $31,200 per year on a full-time, annual basis.
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