GSSCC is the undisputed voice of and for member businesses and their interests, having built long-term and long-lasting relationships with legislators, policymakers, and government agencies in Montgomery County and Annapolis. Throughout the year, the Chamber and its members meet with and testify before legislators and government leaders, to ensure that our issues are effectively communicated. 

Please see below on Actions that you can take to make your voice known about these issues. 

We are the #GSSCC, we are #SilverSpringStrong, and we #ElevateYourVoice.

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CURRENT ACTION ALERTS
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Proposed Legislation: County Minimum Wage - Tipped Employees

THE DETAILS:
Councilmembers Jawando and Mink proposed Bill 35-23, County Minimum Wage – Tipped Employees, which would repeal the tipped wage credit for restaurant and other service industry employees. 

Find more information here.

GSSCC ACTION:
GSSCC heard from members in the restaurant and hospitality industries and partnered with several other local Chambers and the Restaurant Association of Maryland to strongly oppose this legislation by issuing a joint statement citing the negative impact on restaurant operators, restaurant servers, and the larger Silver Spring economy. 

Read the Joint Statement here, also posted below in it's entirety.

On Tuesday, October 17, GSSCC President & CEO Stephanie Helsing testified at the Montgomery County Council public hearing in opposition of Bill 35-23. Watch her testimony here, beginning at the 54:45 mark and read the full copy of her testimony here.

NEXT STEPS:
The next hearing will be on Wednesday, January 17. It will be a combined hearing between HHS Committee and Economic Development Committee chaired by Gabe Albornoz and Natali Fáni-Gonzalez, respectively. The Chamber will submit written opposition once again before the hearing and plans on attending the hearing.

GSSCC President & CEO Stephanie Helsing testifying in opposition to Bill 35-23.

Joint Chamber Statement Bill 35-23 Tipped Wage Credit

October 13, 2023
 
The Honorable Evan Glass
and Members of the Montgomery County Council
100 Maryland Avenue, Sixth Floor
Rockville, Maryland 20850
 
Dear Council President Glass and Members of the Council:
 
On behalf of the Gaithersburg-Germantown Chamber of Commerce, Greater Silver Spring Chamber of Commerce, Greater Bethesda Chamber of Commerce, and the Hispanic Chamber of Commerce Montgomery County, we write in strong opposition to Bill 35-23, County Minimum Wage - Tipped Employees, the repeal of the tipped worker exemption. Together, we represent more than 1600 employers, including small business owners and minority-owned businesses in the restaurant and hospitality industries.
 
We urge the County Council to reject this legislation that would ultimately reduce the overall earnings of tipped employees, and would harm an already overstressed industry that is just now emerging from the global pandemic.
 
The restaurant industry has had a more challenging time in making up for what was lost over the last few years. There continue to be negatively impactful hiring challenges, as well as increased costs for supplies and food that have forced restaurants to raise prices to a degree never seen before, coupled with fewer people dining out, or not dining out as frequently. Grants and support that were offered during COVID often failed to meet the actual needs the restaurants had and many are still struggling under the weight of increased debt. Passing Bill 35-23 would be one more hit that most of our restaurants could not absorb.
 
Like all workers, restaurant tipped employees must earn at least the full applicable minimum wage per hour in base wages plus tips, and already do. Under federal, state and local minimum wage laws, employers are required to make up any deficiencies if a tipped employee does not earn enough in base wages plus tips to make at least the full minimum wage. There is NO subminimum wage for restaurant tipped employees. The tip credit is critical to full-service restaurants because of their labor needs and slim profit margins. If a restaurant employee reports earning less than minimum wage, we encourage you to find the gap in enforcement with that employer.
 
Please consider the following:

1. Passing this legislation and eliminating the tip credit would be devastating to these full-service restaurants because restaurant owners would be forced to raise menu prices even further and/or to impose a mandatory service charge on customer checks to offset higher labor costs.
2. There is no guarantee that additional menu price increases alone would cover the additional labor costs because prior substantial price increases have already reduced overall customer traffic.
3. Please realize this increase in costs affects not only payroll, but also adds additional administrative costs, increased taxes, and an increase in workers compensation. We can guarantee that the majority of small and minority owned restaurants won’t be able to “find” this money.
4. The earnings potential of tipped employees would also significantly decrease if the tip credit were eliminated because, as we know, most customers do not tip and will not tip on top of the afore-mentioned service charges, nor do restaurants expect them to. Tipped employees are among the highest earners in full-service restaurants, earning a median of $27 per hour including tips, according to National Restaurant Association research. Servers at some restaurants can earn $40 or more per hour including tips, and we have confirmed that number with many of our members. Bill 35-23 would effectively be taking money away from the majority of tipped employees.
5. This legislation is not being requested by any restaurant owner or restaurant employee in Montgomery County. One Fair Wage, who has requested this legislation, is an organization located in Boston. They are not a local organization that knows OUR businesses and they clearly have not taken the time to understand how the minimum wage works in Montgomery County. One Fair Wage misrepresents the facts and the status of tipped restaurant workers in Montgomery County in its very mission, when it once again uses the statement “sub-minimum wage for tip workers who make less than the minimum wage before tips.” This sub-minimum wage simply does not exist here. By Montgomery County Code Ch 27, Article XI, ALL tipped restaurant workers make minimum wage, which is currently $14.50, $15 or $16.70 depending on employer size, and subject to annual CPI increases, when you factor in the mandatory $4 an hour wage PLUS tips.

 
With the above-mentioned points and other arguments you are hearing directly from our members, our combined Chambers of Commerce believe that Bill 35-23 would negatively alter the restaurant industry in the County forever and be one more closed door to opportunity and growth in Montgomery County, especially for our smaller, minority owned establishments. Therefore, we ask that the County Council listen to OUR local businesses, not an outside entity with its own agenda. Please vote against the repeal of the tipped worker exemption and oppose Bill 35-23!
 
Please do not hesitate to reach out to any of us.

Paula Ross
​President & CEO
Gaithersburg-Germantown Chamber of Commerce

Stephanie Helsing
​President & CEO
Greater Silver Spring Chamber of Commerce

Allie Williams
​President & CEO
Bethesda Chamber of Commerce

Carmen Larsen
​President & CEO
Hispanic Chamber of Commerce Montgomery County

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Drone As First Responder Program

The Montgomery County Council voted unanimously Tuesday, November 7, to approve the Drone As First Responder pilot program. This program will fund drones to assist the Montgomery County Police Department in emergency response before officers arrive on the scene. The Chamber fully supported this initiative and feels that it will make positive impact on the ground, address crime and allowing MCPD to better allocate its resources.

Drones will be deployed after a 911 call if the dispatcher and drone pilot believe there is a use for the drone to respond. Once the drone arrives on the scene, the pilot can assess if threats are credible, if more emergency responders are needed, and other details that could help expedite emergency response. The program will involve two drones – one for the downtown Silver Spring area and one for the downtown Wheaton area – that can be sent to crime scenes to assess the area before officers arrive. The program will cost $350,000.

The program was first introduced during the fiscal 2024 budget process in the spring, but councilmembers asked the police department to do more outreach and public engagement on the program before the council brought it to a vote for a supplemental appropriation. In the months following, the council held multiple work sessions to discuss the legislation, and the police department held two public engagement sessions for members of the community.

The appropriation was recommended by the council Public Safety and Government Operations committees at an Oct. 18 work session, and the committees worked to streamline the language to ensure the technology won’t be misused for surveillance.

For more information, read here.

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Montgomery County Council Legislation Recap
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The Chamber closely followed and OPPOSED County legislation regarding property tax increases and rent control because we believe these efforts will damage our economy, discourage investment, and worsen the affordability of having a business and workforce in Montgomery County.

Please see below the actions that our Chamber recommended from our members and the results of that advocacy.  

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Proposed 10% Property Tax Rate Increase

THE DETAILS:
A 10% property tax increase is proposed by County Executive Elrich in the FY2024 Operating Budget. 

GSSCC ACTION:
The Chamber issued action alerts to its members urging them to send letters to the Council in opposition to the 10% property tax increase. Read the action alert here. The Chamber also joined in a coalition of several area Chambers in opposition to this legislation and GSSCC President & CEO Stephanie Helsing testified in opposition during the County Council budget hearing on May 2 as well as submitted testimony to the County Council. Read her testimony here.

THE RESULTS:
On Thursday, May 18, the Montgomery County Council voted 7-4 to increase property taxes by 4.7 percent with Councilmembers Will Jawando (D-At-large), Andrew Friedson (D-District 1), Kate Stewart (D, District 4), and Kristin Mink (D, District 5) voting against the legislation. The increase is much less than the 10 percent proposed by County Executive Marc Elrich, which was deemed necessary to fund Montgomery County public schools, a position the Chamber and business community vehemently opposed. Read here for more information.

GSSCC President & CEO Stephanie Helsing testifies in opposition to the proposed 10% property tax increase.

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Proposed Rent Control Legislation

THE DETAILS:
​Two dueling rent control bills were being considered by the County Council. One bill, Bill 16-23, Landlord-Tenant Relations – Rent Stabilization (The HOME Act), sponsored by Councilmembers Jawando and Mink, proposes a 3% rent cap or CPI, whichever is lowest. The other bill, Bill 15-23, Landlord-Tenant Relations-Anti Rent Gouging Protections, sponsored by Councilmember Fani- González and five other Councilmembers, proposes an 8% rent cap plus CPI.

​GSSCC ACTION:
The Chamber issued action alerts to its members urging them to send letters to the Council telling them to oppose any rent control. Read the communication here. The Chamber also joined in a coalition of several area Chambers in opposition to this legislation and GSSCC President & CEO Stephanie Helsing testified in opposition. Read her testimony here.

​THE RESULTS:
On Tuesday, July 18, the Council voted to approve rent stabilization Bill 15-23 which will cap annual increases at the region's consumer price index plus 3%, with a hard cap of 6% of the base rent. The Council voted 7-4, with councilmembers Gabe Albornoz (D-At-large), Andrew Friedson (D-District 1), Marilyn Balcombe (D-District 2), and Dawn Luedtke (D-District 7) voting against the legislation. Read  here  for more information.

The Chamber opposed the rent control legislation and believes that implementing rent control in Montgomery County will exacerbate the housing shortage, increase the cost of rental housing, and decrease the quality of existing housing stock. It urged the Council to consider the message legislation like this would send to those interested in investing in our region.

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