As the push for a livable minimum wage continues to grow in the U.S., restaurant tipped employees have become a focus of the debate. This year, several states including Connecticut, California, Florida, Illinois, Massachusetts, and New York have proposed increasing the minimum wage for tipped employees (via Godzilla Newz).
The current U.S. minimum wage for tipped employees is set at $2.13 per hour. This means that, in states without any higher requirement, an employee who usually earns tips can be paid less than minimum wage. The majority of the states in the U.S. have implemented a minimum wage above the federal $2.13, but even so, tipped workers are still only making around $3-4 per hour.
The proposed increases to the minimum wage for tipped employees seen in certain states are meant to give workers the same basic pay as any other minimum wage employee, regardless of how much they make from tips.
Proponents of the wage increases argue that tipped employees, who are predominately women, face higher risk of unemployment and poverty than other occupations. Additionally, workers in this field often lack access to health insurance and other benefits expected in the workplace.
John Syrett, an economics professor at Wake Forest University, explains that “The jobs many tipped workers take on don’t really provide a chance to rise up the wage ladder.” He went on to say, “When we talk about the gap between men and women’s earnings, there’s a really huge gap in overall earnings between tipped and non-tipped workers that is very indicative of a broken system.”
On the other hand, many business owners worry that increasing the minimum wage for tipped employees could be a financial burden. For instance, if the minimum wage is raised and tips don’t increase as well, then restaurants may not be able to absorb the costs of the increase, which may lead to job layoffs in the industry.
Overall, this year is an important one for tipped employees. It is essential for states to consider both sides of the argument and to move forward with a full-minimum-wage law, as tipping isn’t a reliable or consistent source of income. This would be a step forward in creating a fair and sustainable wage system that would benefit all workers.
As the push for a livable minimum wage continues to grow in the U.S., restaurant tipped employees have become a focus of the debate. This year, several states including Connecticut, California, Florida, Illinois, Massachusetts, and New York have proposed increasing the minimum wage for tipped employees (via Godzilla Newz).
The current U.S. minimum wage for tipped employees is set at $2.13 per hour. This means that, in states without any higher requirement, an employee who usually earns tips can be paid less than minimum wage. The majority of the states in the U.S. have implemented a minimum wage above the federal $2.13, but even so, tipped workers are still only making around $3-4 per hour.
The proposed increases to the minimum wage for tipped employees seen in certain states are meant to give workers the same basic pay as any other minimum wage employee, regardless of how much they make from tips.
Proponents of the wage increases argue that tipped employees, who are predominately women, face higher risk of unemployment and poverty than other occupations. Additionally, workers in this field often lack access to health insurance and other benefits expected in the workplace.
John Syrett, an economics professor at Wake Forest University, explains that “The jobs many tipped workers take on don’t really provide a chance to rise up the wage ladder.” He went on to say, “When we talk about the gap between men and women’s earnings, there’s a really huge gap in overall earnings between tipped and non-tipped workers that is very indicative of a broken system.”
On the other hand, many business owners worry that increasing the minimum wage for tipped employees could be a financial burden. For instance, if the minimum wage is raised and tips don’t increase as well, then restaurants may not be able to absorb the costs of the increase, which may lead to job layoffs in the industry.
Overall, this year is an important one for tipped employees. It is essential for states to consider both sides of the argument and to move forward with a full-minimum-wage law, as tipping isn’t a reliable or consistent source of income. This would be a step forward in creating a fair and sustainable wage system that would benefit all workers.
