Decisions made in Trenton that impact millions of workers are often made with little to no input from those directly impacted. When it came to the potential elimination of the “tipped wage,” the New Jersey Restaurant and Hospitality Association changed that dynamic by going straight to the source. Nearly 400 tipped employees were surveyed across New Jersey. The results are clear, decisive, and should not be ignored. These workers — our neighbors, friends, and family members — overwhelmingly support keeping the system that has allowed them to thrive. The data speaks for itself:
- 88% prefer the current system over a flat wage model
- 79% say the tipping system works well and should not be changed
- 83% report earning $20-$40+ per hour with tips and base wage combined
- 82% believe eliminating the tip credit would reduce their earnings
The message could not be clearer: eliminating tip wage would hurt the very workers lawmakers claim to protect. It would reduce earnings, undermine their sense of agency, and destabilize an industry. We also know what happens when policymakers disregard worker input. Washington, D.C. tried to eliminate its tip credit, and the consequences were disastrous. Workers immediately saw their take-home pay shrink as mandatory service charges replaced tips. Customers stopped tipping extra. The experiment backfired so badly that lawmakers were forced to reconsider and reverse course.
About the survey
The online survey of 394 tipped employees currently working at full-service restaurants in New Jersey was conducted in June and July 2025. It was done in coordination with CorCom, a research and consulting firm headquartered in Pittsburgh.
New Jersey should learn from this mistake — not repeat it. Tipped work is demanding. It requires long hours, stamina, and skill. However, what makes it worthwhile is the high-earning potential and the flexibility that provides a vital source of income. Workers choose this career path because they can and do make more than minimum wage. Flattening wages would strip away that opportunity and destabilize an
industry that employs tens of thousands across our state. As president and CEO of the NJRHA, I urge policymakers to pause, reflect, and listen to workers. They have spoken, and their message is overwhelming: preserve the current system. Respect their voices. Protect their livelihoods. Anything less would be an injustice to the thousands of tipped employees who make New Jersey’s hospitality industry one of the strongest in the nation. If legislators truly want to stand with workers, they must start by listening to them.
Daniel Klim is the CEO of the New Jersey Restaurant and Hospitality Association
