Closing the loop: policy feedback and economic citizenship in hospitality wage reform

Summary

This conceptual paper, authored by Russen and Cain in 2026, delves into the intricate relationship between policy feedback, economic citizenship, and hospitality wage reform. The methodology involves developing a "conceptual framework" that applies "policy feedback and economic citizenship theories" to examine the recently enacted "No Tax on Tips" (NTOT) provision within the 2025 One, Big, Beautiful Bill and existing Tip Credit policies. The model developed illustrates how these wage and tax policies influence organizational practices and employee outcomes within the hospitality industry. The core findings indicate that NTOT and Tip Credit policies initiate and contribute to feedback loops that can either reinforce existing "systemic inequities" or, conversely, drive "reform" within the hospitality sector. The authors demonstrate how policy features and firm practices interact in these loops to perpetuate labor inequities. Furthermore, the study highlights how these feedback dynamics are either reinforced or disrupted through organizational action and the exercise of "worker economic citizenship". The implications of this research are significant, calling for "structural reforms that prioritize living wages, worker dignity, and sustainable employment practices" in hospitality. The paper's "policy-organization-worker framework" provides a tool for understanding how to address labor inequities and outlines "pathways for reform". It critically examines how policies like NTOT can create uneven benefits, often favoring high-earning tipped workers while offering minimal relief to those near or below the poverty threshold. Ultimately, the paper aims to shift the focus from short-term fiscal relief to the long-term goals of economic viability and social justice within the hospitality industry.