How the Silicon Valley minimum wage spike affects the restaurant industry


At the beginning of 2018, the minimum wage in Palo Alto jumped from $12 per hour to $13.50 per hour. In the restaurant industry, this affects everyone on staff — from the employees customers see, to the employees customers do not.

California is one of out of only five states that require restaurant owners to pay the full minimum wage to employees that receive tips on top of their regular paycheck.

Local Union 271, a farm-to-table restaurant on University Avenue in downtown Palo Alto is making up for the extra cost of labor by introducing a 4 percent “living wage” line item on every receipt.

Editor’s Note: Catherine Goetze is employed as a server at Local Union 271.