A Pittsburgh restaurant has done away with tips in favor of paying its employees salary and benefits.

Bar Marco is now paying workers a base salary of $35,000, 500 shares of the company, paid vacation, and health care.

'It's a huge increase,' employee Csilla Thackray told reporters. 'It means that I no longer have to live with that constant fear of running out of money.'

Thackray told Business Insider she would not have an extra $400 in monthly income.

In Pennsylvania the minimum wage is $7.25 per hour with a $2.83 minimum for tipped workers.

'No one was expecting this to happen,' Thackray said. 'When you decide to make this industry your life, you kind of expect you are going to make a financial sacrifice to pursue this passion. Now I'm getting to do what I'm passionate about and also getting rewarded fiscally.'

Co-owner Bobby Fry says he and his partners have been discussing changing payments for at least a year.

'The lightbulb went off,' he said 'If we were going to offer health care, why not offer a complete employment contract, and do away with gratuity altogether?'

He does not believe menu prices will have to change to support the new system.

Employees will have to work no more than 40-44 hours per week and will get two days and one night of the week off.

They will have 10 days paid vacation.



