The company they are paying, ServSafe, doubles as a fundraising arm of the National Restaurant Association — the largest lobbying group for the food-service industry, claiming to represent more than 500,000 restaurant businesses. The association has spent decades fighting increases to the minimum wage at the federal and state levels, as well as the subminimum wage paid to tipped workers like waiters. For years, the restaurant association and its affiliates have used ServSafe to create an arrangement with few parallels in Washington, where labor unwittingly helps to pay for management’s lobbying. First, in 2007, the restaurant owners took control of a training business. Then they helped lobby states to mandate the kind of training they already provided — producing a flood of paying customers. The president of the National Restaurant Association, Michelle Korsmo, declined to be interviewed. In a written statement, she said the group had sought to protect both public health and the financial health of the industry. As money flowed in from the National Restaurant Association’s training programs, its overall spending on politics and lobbying more than doubled from 2007 to 2021, tax filings show. The national association donated to Democrats, Republicans and conservative-leaning think tanks, and sent hundreds of thousands of dollars to state restaurant associations to beef up their lobbying.
During the Clinton and Obama administrations, the association was a major force in limiting employer-provided health care benefits. And though pressure from liberal groups has grown and workers’ wages have fallen for decades when adjusted for inflation, the group helped assemble enough bipartisan opposition to scuttle a bill in 2021 to raise the federal minimum wage for all workers to $15 per hour over five years.
The association had also won a series of battles over state-level wage minimums, though its fortunes reversed last year. Both the District of Columbia and Michigan moved to eliminate the “tip credit” system — where restaurants are allowed to pay waiters a salary below the minimum wage, on the expectation that tips from customers will make up the rest. That was the first time any state had eliminated the tip-credit system in more than 10 years.
Legally, the National Restaurant Association and its state-level affiliates are a species of nonprofit called a “business league,” with more freedom to lobby than a traditional charity.
Since the 1960s, their lobbying has focused heavily on the minimum wage — arguing that labor-intensive operations like restaurants, which employ more workers at or near the minimum wage than any other industry, could be put out of business by any significant increase in employee costs.
Fifteen years ago, they had just lost a battle in that fight.
Over the association’s objections, Congress had raised the minimum wage to $7.25 an hour. Former board members said they were searching for a new source of revenue — without asking members to pay more in dues.
“That’s when the decision was contemplated, of buying the ServSafe program,” said Burton “Skip” Sack, a former chair of the association’s board. “Because it was profitable.”
At the time, the ServSafe program was run by a charity affiliated with the restaurant association. The association bought the operation, transforming it into an indirect fundraising vehicle.
After that, state restaurant associations in California, Texas and Illinois lobbied for changes in state law.
Previously, those states had required food-safety training for restaurant managers, which typically was paid for by restaurants themselves. After the association’s takeover of ServSafe, lobbying records show, the state affiliates pushed for a broader and less-common type of mandate, covering all food “handlers” like cooks, waiters, bartenders and those who bus tables.
The three state legislatures agreed, in lopsided votes. “This law was happening with or without our participation in the process,” said the president of the California Restaurant Association, Jot Condie. California legislative records show his association was the sponsor of the bill that imposed the mandate.