Living Wage News: Restaurant pays waiters $25 an hour

"I think that restaurants will have to do this,” said Ms. Cohen, who pays servers at Dirt Candy $25 an hour, well above the $7.50 for tipped workers that will go into effect in New York at the end of the year. “How else do you compensate for this extra money you’ll have to pay?”

Like many owners, Ms. Cohen has long wanted to close the yawning earnings gap between those who prepare the food and those who serve it. Tips are not shared with the kitchen staff, whereas the revenue from certain types of surcharges and higher menu prices can be distributed to everyone. Restaurateurs tick off a long list of reasons for being drawn to the idea. In some cities like New York, where tipping is subject to a confusing welter of federal, state and local regulations and tax laws, eliminating it would simplify bookkeeping. Managers say it would also allow them to better calibrate wages to reward employees based on the length of their service and the complexity of their jobs.

NY Times Article