Additional restaurant relief aid and $15 minimum wage not mutually exclusive: Democrats

Democratic Reps. Earl Blumenauer of Oregon and Eric Swalwell of California say advocating for both more restaurant stimulus funding and a $15 per hour federal minimum wage is not a contradiction for Democrats.

Blumenauer and Swalwell held a news conference Tuesday with restaurateurs calling for Congress to pass another round of restaurant stimulus funding. The initial round of $28.6 billion was included in the $1.9 trillion America Rescue Plan Act, enacted in March, 2021. The restauranteurs said they had used their relief funding for rent payments and personnel costs. 

Just the News asked the Democratic lawmakers if it is a contradiction to advocate for more restaurant stimulus funding while Democrats also push for a $15 minimum wage for tipped workers, which would raise the personnel costs for restaurant owners.

"I don't see this as being a contradiction," Blumenauer said. "Frankly, what we're seeing with people in this industry, they've raised wages. In Oregon, we have already a $15. We don't have the tip option ... I don't think it's a contradiction at all, that's on a separate track. That's not what we need to do in this legislation."

Swalwell said the point of the restaurant stimulus fund is to help restaurants get as close as possible to the condition they were in prior to the coronavirus pandemic.

Swalwell said restaurants are being hurt by the pandemic, not by the minimum wage increases mandated by states like California, where as of 2022 the minmum wage is $14 per hour and includes tipped workers.

"But the worst thing we can do to them is two things, one, to just completely shut them down, indoor and outdoor, and to not try and invest in them and make them whole," Swalwell said.

According to the Oregon state government, the minimum wage is $14 per hour in Portland, including for tipped workers. It is $12.75 in other counties in the state of Oregon. 

The two lawmakers agreed that the restaurant stimulus funding doesn't need to be tied to raising the minimum wage.

"We need to restore this fund to be able to help the people who have been shut out," Blumenauer said, referring to restaurant owners who weren't able to receive funds under the first round of funding. 

Swalwell cited rising inflation and supply chain issues as reasons why Congress should provide more stimulus funds for restaurants.

"I think we should really lean in on this, especially as we're seeing inflation and other supply chain issues affecting the economy that, you know, this could put capital, needed capital into the hands of restaurateurs that would immediately make its way to wages for the workforce," he said.