Statement of Zed Wondemu, Owner, Zed's Ethiopian Cuisine in Georgetown, Washington, D.C.,
on behalf of the National Restaurant Association

Testimony Before the Subcommittee on Social Security
of the House Committee on Ways and Means

Hearing on Improving Social Security Work Incentives

February 15, 2000

Mr. Chairman and members of this subcommittee, thank you for the opportunity to testify on the impact of the Social Security earnings test. My name is Zed Wondemu and I own and operate Zed's Ethiopian Cuisine in Georgetown. This issue has long been a frustration of mine and it is my sincere hope that you, as lawmakers, will eliminate the earnings test and allow more older Americans to work without fear of losing their benefits.

I know that when people think of restaurant employees they think of younger adults. But as the nation's largest private-sector employer, the foodservice industry also employs tens of thousands of individuals between the ages of 65 and 70.

Although I am testifying today on behalf of the National Restaurant Association, I am here to tell my own story. Because as a small businessperson, I see firsthand how the Social Security earnings test changes the choices people make.

My restaurant, which offers excellent cuisine with quality service, employs only ten individuals. Clearly, I rely on the quality of employees, not the quantity, to uphold my restaurant's reputation. I take great pride in the fact that, for several years running, my restaurant has been recognized by Washingtonian Magazine as "one of Washington's 100 very best restaurants."

In addition to my restaurant, I also own a small apartment building, with just seven units. To help out with the upkeep of the building, I wanted to hire an older gentleman who lives in one of the apartments. It only has seven units, so I do not need, and can not afford, a management company. I just need someone to help out. Prior to his retiring, this tenant was a maintenance worker for a company in the area. At the age of 69, he is in excellent health, in fact, I would say he is still very strong and vibrant for any age. However, because of his concern over the losing his Social Security benefits if he works too many hours, I am unable to hire him to be an on-site manager.

I do not understand the need to continue this limitation. There may have been a reason in the past, but times are different. I don't need to tell you how the population is changing. I know the point has been overemphasized here today, but I hope the baby-boom generation will change the way this culture thinks about its senior citizens.

This is not the time to prevent people from working. You can figure out there's a big labor shortage today just by taking a quick drive around this town. Everyone is looking for help. In my business, we place a premium on the type of help that older employees offer - dependability, experience, a certain knowledge of the world, a work ethic, and a cultural history. In a small restaurant, the ability to employ quality workers is critical. To me, the highest-quality employees are the more "seasoned" individuals - the ones who don't need all the training, the ones who provide an opportunity for us to learn from them.

Coming to this country at the age of 15 to go to school, it is obvious that I have lost some of the real tradition and habits of cooking from this ancient nation of Ethiopia. Now, my adopted country's free enterprise system allows me to transport this fine cuisine to this beautiful country of ours. In doing so, I constantly depend on the older generation's advice and consultation to preserve the true cooking and tradition. I believe there is much to be learned from the older generation, but policies such as the earnings test send a strange message to our senior citizens about how much they "should" work.

As the number of older Americans grows, this country will need to tap into this resource. For this reason, I hope this Congress is successful in eliminating the Social Security earnings test so we can truly take advantage of the experience and skills that older Americans contribute to this country's economic future.

Again, thank for the opportunity to address this distinguished subcommittee, and most of all, for listening to those of us on the frontlines of this issue.