Hyattsville’s Pizzeria Paradiso is no longer relying on tipping, part of a wave of restaurants changing their approach to paying staff during the pandemic.
Under state and federal laws, restaurants are allowed to pay servers and bartenders below minimum wage as long as they make up the difference with tips.
But with the coronavirus pandemic hurting business, many restaurants have moved away from the traditional model.
Since early January at Pizzeria Paradiso’s locations in Hyattsville and D.C., customers eating in automatically have a 20 percent service charge and take-out orders come with a 12 percent service charge.
Customers can still tip if they want, but they don’t have to, and all tips will be divvied up with everyone working that day.
Owner Ruth Gresser said the change will allow the restaurant to have a “team approach,” and more experienced workers are now being paid more than the minimum wage, which is currently $12.50 in Maryland.
In a post on Pizzeria Paradiso’s website, Gresser says that the decision fits with the restaurant’s other policies, such as providing a 401k, sick leave, vacation leave and death and disability insurance.
“We believe that this move will begin the process of establishing a more equitable and stable compensation system for all of our staff members,” she writes.
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