Comment on This week in the war on workers: $2.13 tipped minimum wage is a recipe for poverty

This week in the war on workers: $2.13 tipped minimum wage is a recipe for poverty

You'd think it was a blindingly obvious point, but if you allow a group of workers to be paid just $2.13 an hour because tips are supposed to make up for it, a lot of them are going to end up poor. And if you require businesses to pay that group of workers more than $2.13 an hour, they're less likely to live in poverty. The poverty rate of waiters and bartenders is much lower in the seven states that require restaurants to pay waitstaff and bartenders the regular minimum wage regardless of tips: in these states, it is nearly 8 percentage points lower than in the $2.13 states and over 4 percentage points lower than in the states where tipped workers get more than $2.13 per hour but less than the regular minimum wage. Blindingly obvious, but Congress has kept the federal tipped minimum wage at $2.13 for more than 20 years, and even some states that raise their minimum wage leave tipped workers out of it.

 

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