A Missoula, Mont., TV station broke a story yesterday that could nab honors as the weirdest restaurant-related news flash of the year. If a golf club or reality-TV star had been involved, former Burger King marketing chief Russ Klein would've almost certainly snagged the media circus' center ring.
Klein recently left his post as president of BK marketing for what the chain stressed were personal reasons. It adamantly refused to disclose any details, indicating that the matter was private.
Jump to Kalispell, Mont., a city farther from BK's home city of Miami than the distance alone attests. It seems that Klein was traveling with a backpack containing a laptop and $6,000 in cash. Okay, maybe he's a big tipper.
Certainly he's careless, according to the report by station KECI. The NBC affiliate explained Sunday that Klein had placed the cash-packed knapsack in what he believed to be his rental car. But the vehicle turned out to be someone else's.
The driver of that car found the cash and turned it in, and even refused the reward Klein had offered for the backpack's return, KECI said in a follow-up report yesterday. Klein and his wife then decided to give KCEI and the local police some $8,000 for local charities, to be divvied up as they saw fit.
Trust me on this, but it's highly unusual for a news outlet to be forwarded a tidy sum of money by someone it's covering. Ditto for a police department that's been called upon to help in the situation. Put those two rarities together, and you have something of legendary uniqueness. We're talking something on a Lady Gaga scale.
"Before you're owed anything, try to give ahead of time, and it creates a certain vibe in your life," Klein was quoted as telling the station. He explained that payback was complete, but that he wanted to pay the money forward.
Call me cynical, but I don't think we've heard the last about this.
Showing posts with label Montana. Show all posts
Showing posts with label Montana. Show all posts
Wednesday, December 23, 2009
Sunday, February 15, 2009
Tip laws draw new scrutiny
Raise a glass in sympathy to the industry’s public affairs officers. It’s bad enough they’ll be rooting for days through Congress’ stimulus package, looking for possible boons to their companies or the business overall. Now there’s the Whack-a-Mole marathon that statehouses commenced last week, with new tip bills popping up faster than peanut product recalls. And if their chain has any restaurants in the U.K., they might as well start pounding the Red Bull right away. Cut with a little vodka, perhaps.
Most of the proposals deal with the tip credit, a provision of wage-and-hour laws that assumes servers earn most of their income in gratuities. In states where a credit is on the books, employers have to pay only a portion of the mandated minimum wage, with the rest coming from what customers leave on the table as tips. Many of the jurisdictions follow federal law, which requires employers to pay tipped staffers only $2.13 an hour, compared with the full minimum of $6.55.
The waiter, waitress or bartender makes no less than he or she would if they collected the full minimum wage—and, indeed, they often make considerably more. Rather, the credit merely allows some of that pay to come directly from patrons.
But movements afoot in states like Maine, Kansas and Missouri aim to change that situation, which has been the norm in all but eight states since the 1980s. Labor proponents say it’s unfair for servers to collect only a small fraction of what their non-tipped colleagues are paid under state wage requirements. Whatever they get in tips, the advocates argue, is icing on the cake, a gift they should be entitled to keep in addition to their hourly pay.
Restaurants, of course, argue that they can’t afford to pay more in wages right now. Some also point out that the traditional tip is 15%, whereas the profit margin for most restaurants is in the single digits, and often under 5%.
Indeed, the trade cited its dire economic conditions in trying, unsuccessfully, to institute a tip credit in Montana. The proposal was just defeated in the state Senate by a 29-21 bipartisan vote.
The industry was more successful earlier this month in Wyoming, beating back a proposal to adjust the tip credit there. The measure would have raised the hourly minimum wage for servers by $3 an hour.
Yet to be decided is a proposal in Maine, where a new union-like group patterned after one in New York City, the innocuous-sounding Restaurant Opportunities Center, is pushing to raise the minimum wage of servers to 60% of the mandated rate for other workers. The current floor for servers is 50% of the full hourly wage.
A measure under consideration in Kansas would raise servers’ minimum to $4.35, from the current $2.13.
In Hawaii, restaurateurs are leading the charge to change the state’s tip credit, which allows them to lower servers’ minimum pay by just a quarter an hour, to $7. They’re arguing that the island state’s laws shouldn’t be out of sync with the pay scale of the mainland, and cite the long and growing list of restaurants that have been shuttered there by the economic freefall.
If you ask me, both sides have compelling arguments, given the state of the economy. There just aren’t enough dollars going into restaurants, so employers and employees are trying to adjust the split in whatever way is most favorable to them. It’s understandable, just not easily resolved.
So let’s hope those public affairs officers find plenty of hopeful indications within the stimulus package. In the meantime, send ‘em a whole bottle of the good stuff. Charge it to the bankruptcy lawyers, whose industry seems to be the only one doing better in this environment.
Most of the proposals deal with the tip credit, a provision of wage-and-hour laws that assumes servers earn most of their income in gratuities. In states where a credit is on the books, employers have to pay only a portion of the mandated minimum wage, with the rest coming from what customers leave on the table as tips. Many of the jurisdictions follow federal law, which requires employers to pay tipped staffers only $2.13 an hour, compared with the full minimum of $6.55.
The waiter, waitress or bartender makes no less than he or she would if they collected the full minimum wage—and, indeed, they often make considerably more. Rather, the credit merely allows some of that pay to come directly from patrons.
But movements afoot in states like Maine, Kansas and Missouri aim to change that situation, which has been the norm in all but eight states since the 1980s. Labor proponents say it’s unfair for servers to collect only a small fraction of what their non-tipped colleagues are paid under state wage requirements. Whatever they get in tips, the advocates argue, is icing on the cake, a gift they should be entitled to keep in addition to their hourly pay.
Restaurants, of course, argue that they can’t afford to pay more in wages right now. Some also point out that the traditional tip is 15%, whereas the profit margin for most restaurants is in the single digits, and often under 5%.
Indeed, the trade cited its dire economic conditions in trying, unsuccessfully, to institute a tip credit in Montana. The proposal was just defeated in the state Senate by a 29-21 bipartisan vote.
The industry was more successful earlier this month in Wyoming, beating back a proposal to adjust the tip credit there. The measure would have raised the hourly minimum wage for servers by $3 an hour.
Yet to be decided is a proposal in Maine, where a new union-like group patterned after one in New York City, the innocuous-sounding Restaurant Opportunities Center, is pushing to raise the minimum wage of servers to 60% of the mandated rate for other workers. The current floor for servers is 50% of the full hourly wage.
A measure under consideration in Kansas would raise servers’ minimum to $4.35, from the current $2.13.
In Hawaii, restaurateurs are leading the charge to change the state’s tip credit, which allows them to lower servers’ minimum pay by just a quarter an hour, to $7. They’re arguing that the island state’s laws shouldn’t be out of sync with the pay scale of the mainland, and cite the long and growing list of restaurants that have been shuttered there by the economic freefall.
If you ask me, both sides have compelling arguments, given the state of the economy. There just aren’t enough dollars going into restaurants, so employers and employees are trying to adjust the split in whatever way is most favorable to them. It’s understandable, just not easily resolved.
So let’s hope those public affairs officers find plenty of hopeful indications within the stimulus package. In the meantime, send ‘em a whole bottle of the good stuff. Charge it to the bankruptcy lawyers, whose industry seems to be the only one doing better in this environment.
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