$2.13 an Hour? Why The Tipped Minimum Wage Has to Go

[xchrom]

http://www.thenation.com/blog/179087/213-hour-why-tipped-minimum-wage-has-go



The person who serves you lunch today may work for a minimum hourly wage that’s less than the price of your coffee. And no matter how generous your tip, at the end of the day, she'll take home much less in wages than what she deserves. Federal law has been exploiting workers like her for years, according to labor advocates, thanks to an ultra-low wage floor that systematically cheats servers, bartenders, hairdressers and others of a fair day’s pay.

The minimum wage for tipped workers—known as the “tip credit” or “subminimum wage” system—is just $2.13 an hour, less than a third of the regular federal minimum of $7.25. This rate is based on the assumption that earnings from tips will make up the difference, so total pay will approximate that of other low-wage laborers. Now, as campaigns to raise state and federal minimum wages mushroom nationwide—and with campaigns under way for a $15 per hour wage in fast food joints—the base pay of their fellow workers in diners and cafes seems even more outrageous.

A unique economic relic, the base wage for tipped workers has eroded steadily since 1996, when it was unpegged from the already absurdly low federal minimum. The crumbling value of both wage tiers over the past decade, according to the calculation of advocacy group Restaurant Opportunities Center (ROC), amounts to a yawning gap between tipped workers’ earnings today and what they would have made had the wage rates been adjusted equitably. All in all, the gap represents a net “loss” of more than $20 billion.

That loss is spread across a workforce of some six million nationwide. The subminimum applies to various tipped service sectors (based essentially on custom), ranging from bussers to massage therapists to nail salon technicians—generally some of the lowest paid, most precarious jobs. Most are in the restaurant industry, working as bartenders and servers.

[yeoman6987]

1. Pay living wage

End tipping. Europe and Asia does not tip and they do fine.

[standingtall]

3. You don't have to end tipping

To end sub-minimum wage employment. I believe there is like 8 states were sub-minimum wage employment is illegal and they still have tipped workers.

[CreekDog]

6. they tip in Europe

still need to pay a living wage though, regardless

[standingtall]

2. Yes sub-minimum wage work needs to go

It is nothing more than legal wage theft. I also know of situations where tipped workers did not make enough tips to meet the minimum wage and are still forced to report their tips as if they had by their employers. A tip is not a wage nor should tips be taxed.

[seveneyes]

4. I could not agree more

Tipping is fine, but it should not be part of anyone's wages.

[WinkyDink]

5. Can you imagine if we WEREN'T the greatest nation on Earth?

*sarcasm*

[Bluenorthwest]

7. I live in Oregon where tipped employees get the full hourly wage plus any tips

Our minimum wage is currently at 9.10 an hour with automatic inflation adjustments built in.

[standingtall]

8. That's the way it should be

In all 50 states but restaurant lobbyist have a lot of political leverage.

[justhanginon]

12. It sure seems like everyone has

political leverage these days except the average American working stiff who no longer has a voice. Maybe unions weren't such a bad idea after all.

[Godhumor]

9. By law, tipped employees must come out to at least minimum wage

If tips do not cover the gap to minimum wage, the restaurant must make servers whole. Restaurants that do not are employing wage theft in a very real and legal sense

[davidpdx]

10. No argument from me on this one

It's downright inhumane.

[truebrit71]

11. That is nothing short of criminal...