Minimum Wage for Tipped Workers Hasn’t Changed in More Than 20 Years
Wednesday, February 22, 2012
While making a living on $7.25 an hour is not easy, it’s even tougher when the federal minimum wage for waiters and waitresses is only $2.13—a rate that hasn’t changed since 1991.
The justification for the lower rate is that these restaurant workers earn tips that will make up the difference between $2.13 and $7.25, the minimum rate for most hourly employees. When waiters and waitresses don’t make enough in tips, restaurants are supposed to cover the gap.
But according to a study by Restaurant Opportunities Centers United, that often doesn’t happen, as some managers and owners prefer to take advantage of those earning below minimum wages. This situation more often affects women than men, due to the fact that females make up 66% of restaurant workers earning tips. Because of inflation, $2.13 is worth 40% less in real terms than it was when the rate was established 21 years ago.
About half of all Americans eat out at a restaurant at least once a week.
To Learn More:
Restaurant Industry Screws Women, While $2.13 Tipped Worker Minimum Wage Makes It Worse (by Laura Clawson, Daily Kos)
Tipped over the Edge; Gender Inequality in the Restaurant Industry (Restaurant Opportunities Centers United) (pdf)
Minimum Wages for Tipped Employees (Wage and Hour Division, U.S. Department of Labor)
- Top Stories
- Unusual News
- Where is the Money Going?
- U.S. and the World
- Appointments and Resignations
- Latest News
- Labeled “Losers” by Romney and Palin, Tesla Motors Pays off Government Loan 5 Years Early
- Neighbors Sue Photographer in “Rear Window” Case
- Appeals Court Rules Government Cannot Deny Visa on “Terrorism” Grounds without a Stated Reason
- Director of the National Reconnaissance Office: Who Is Betty Sapp?
- Chemical Safety Board Accuses ATF of Interfering with Probe of Texas Fertilizer Plant Explosion