Michael Schmidt, vice chair of Cozen O’Connor’s Labor & Employment Department, discusses the recent trend of more and more restaurants doing away with tipping, with the new revenue likely to come in the form of higher food and beverage prices. According to Michael, the elimination of tipping may be a direct result of certain localities’ increased minimum wage. The elimination of tipping and raising of food and beverage prices to pay for higher salaries provides “a means for restaurants to stay competitive in geographic locations like New York, where other related industries such as fast food are set to increase the legal minimum wage and potentially compete even harder for restaurant personnel as a result,” he stated.

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