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Portland businesses weigh in on minimum wage referendum

Question D looks to raise the minimum wage to $18 and eliminate the subminimum wage, or tip credit.

PORTLAND, Maine — After months of anticipation, voters in Portland will soon know the fate of the 13 ballot questions posed this year. One measure in particular, Question D, has drawn hundreds of thousands of dollars in donations and brought about national endorsements

Local businesses are split on the impact it would have if passed.

"I can only imagine that Becky's would change forever. We'll never be the same here," Becky Rand, owner of Becky's Diner on Commercial Street said. 

Rand is one of many business owners in the city concerned about Question D. 

This ballot initiative looks to do several things. It would raise the minimum wage to $18 by 2025, eliminate the subminimum wage, or tip credit. Currently, certain tipped workers are paid half the minimum wage, and the rest of their pay comes from tips. 

In addition to those changes, Question D would create a Portland Department of Fair Labor Practices to enforce the new changes.

"If they decide that making $18 an hour isn't enough, because it's not going to be compared to what they've been making, they're not going to stay here. They'll just go find another restaurant over by the mall," Rand said.

Rand has several concerns about Question D. She fears if it passes, she could have to increase prices, cut down on servers, or bring in more automation to the restaurant, like iPads for ordering. 

"We've lost enough restaurants through the pandemic. We don't need to lose any more. I don't know how anyone is going to stay open with a payroll that is so... it's going to go out of control," Rand said. 

Rand is also concerned that if wages are increased for all staff, it could cut down on the amount of tips they receive. According to Rand, on a busy summer day, servers can make around $40-$50 an hour. Rand also added that her servers, even as young as 15, are started at $20 for back of house positions, like a dish washer.

"What they're asking for is frustrating because no one here is underpaid and nobody here is unhappy. Don't fix what's not broken," Rand said.

There are several other businesses, however, that are outspoken in support of raising the minimum wage. At Ruby's West End, owner Corrinna Stum said she has been paying her employees the full minimum wage.

"We haven't seen any issues with tipping, or really any concerns about how our compensation structure works," Stum said.

Ruby's West End opened in 2021, and said her staff has enjoyed the pay structure. When asked, staff there confirmed they do like their current payment method. According to Stum, customers typically tip between 27 to 32 percent of the bill.

"They're able to pay their bills — they're able to contribute back to the local economy. We go out and they're able to live their lives and thrive instead of just mak[ing] ends meet and worry[ing] where the next rent check's going to come [from]," Stum said.

Ruby's has implemented a 20 percent service fee to accommodate higher wages, however, Stum said this has not been an issue for customers or staff.

"We're very careful about how we spend, and where we spend, and at the end of the day, it's our people first, no matter what," Stum said.

You can read the full language of the question here.

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