TO: Committee on Labor and Public Employment

FROM: Mr. Orrin Cross – General Manager @ Hula Grill

RE: SB331 SD2 Relating to Labor (Tip Credit)

Aloha,

I am writing this letter in support of the March 12th, 2013 hearing to increase the minimum for low wage earners. An amendment to the bill has to be attached so the intensions of the bill will not be diluted. I am in favor of the bill but with a tip credit attached.

Each year brings new challenges to the business climate. Rising cost of goods, fuel prices and health care make the business environment difficult to survive. Labor with benefits represent 35% of the money we take in. Restaurants run on small profit margins that are easily pushed into the red.

The Hula Grill employs approximately 200 employees. Of those employees, about 120 are currently making $7.00 per hour with a .25 an hour tip credit. The average wage when adding in tips for the front of the house is $24.24 per hour. Your intentions are not to give this pay group a raise!

Our kitchen and maintenance staff current averages $14.56 per hour. When the increase of minimum wage goes through, it will affect this group of employees negatively. Not only will they not receive a raise from the increase, we will be forced to pay the servers, bus staff etc. more, taking away future money that would be available for increases.

Previous jobs I have held in Hawaii’ like working at Maui Land and Pineapple in their factory, would have appreciated this increase. These are the folks we need to support and get more money to. We appreciate all your hard work on these difficult decisions.

PLEASE ADD AN AMENDMENT TO THE BILL

Thank You,

Orrin Cross

Hula Grill, 2435 Kaanapali Parkway, Lahaina, HI 96761

PDF: See Page 18