Protections for small businesses still needed before Friday

State Rep. Gina Johnsen, R-Portland, on Wednesday released the following statement after voting in support of bipartisan legislation to protect the livelihoods of tipped workers by safeguarding the tip credit, while allowing for reasonable increases in compensation rates.

“While today marks a significant victory, there is no time to celebrate. Crucial decisions are still needed as stringent mandates threatening our small businesses are set to take effect Friday at 12:01 a.m. unless legislative measures are taken. These impending rules would allow employees to miss up to three days of work without notification and still be shielded from termination.

“This means a kindergarten teacher could unexpectedly extend their weekend, leaving their class unsupervised and their colleagues overwhelmed, with no repercussions if they return by Wednesday. This leniency extends to essential roles including 911 operators, first responders, and other critical services, risking severe operational disruption. If these rules are allowed to take effect, the day after St. Patrick’s Day could be rough for small businesses.”

SB 8 maintains the tip credit at 38% through 2025 while implementing annual increases, eventually capping at 50% of the minimum wage in 2031. The plan also heightens the penalties for employers who fail to fairly compensate their staff. SB 8 is legislatively tied to a bill to address the paid sick time issue, meaning both would have to be signed into law for either to be enacted.

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