ST. PAUL, Minn. (AP) -- A St. Paul restaurant chain that dipped into employee tips to offset a higher state minimum wage is backing away from that practice after it was roundly criticized.
The Blue Plate chain of eight restaurants passed along a credit card processing fee to its staff after the state minimum wage rose by 75 cents an hour on Aug. 1.
Blue Plate told its employees the new wage hike and rising health insurance costs would cost the company $1.2 million. So, the 2 percent credit card fee the restaurant chain had been paying would come out of their tips.
Blue Plate co-owner David Burley tells the Star Tribune they've decided to take a different approach after listening to customers and the community. Blue Plate's restaurants include the Highland, Longfellow and Edina Grills.