Wage mandates a ‘step backward’ for tipped employees

 

epionline.org

In his Sept. 12 From Our Inbox column, Why your waiter hasn’t gotten a raise in 22 years, Scott Klinger misleads readers from his very first paragraph.

Tipped employees do not make “just $2.13 an hour.” Federal law requires that all tipped employees earn at least the minimum wage of $7.25. And in reality, tipped employees actually average $13 an hour when tip income is included, according to Census Bureau data, and top earners earn $24 or more.

Research shows that wage mandates are actually a step backwards for these employees. Economists from Miami and Trinity universities found a greater-than-5-percent drop in hours worked by tipped employees for each 10 percent increase in the tipped wage.

Michael Saltsman, research director, Employment Policies Institute, Washington, D.C.

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