Sub-Wage Little Help

A new report by the Economic Policy Institute and the Center on Wage and Employment Dynamics evaluates the subminimum wage for tipped workers—72.9 percent of whom are women. The federal tip credit allows employers to pay tipped workers just $2.13 per hour as long as this wage, combined with the workers’ tips, reaches the federal minimum wage of $7.25 per hour. But most tipped workers are unaware of this requirement, and the Department of Labor found that it was frequently ignored by employers. Tipped workers are more than twice as likely to fall below federal poverty lines, and women tipped workers earn on average $0.50 less per hour than male tipped workers. Waitresses earned on average $0.83 per hour less than waiters. The report’s authors endorse the WAGES Act, which would incrementally increase the minimum wages for tipped employees over the next three years to 70 percent of the regular minimum wage.

Don't miss the best from America

Sign up for our Newsletter to get the Jesuit perspective on news, faith and culture.

The latest from america

Death-row inmate Ledell Lee. A ruling from the state Supreme Court allowing officials to use a lethal injection drug that a supplier says was misleadingly obtained cleared the way for Arkansas to execute Ledell Lee on Thursday, April 20, 2017, although he still had pending requests for reprieve. (Arkansas Department of Correction via AP)
To take Holy Communion in the face of death is to say that it is fellowship, and not food, that matters most.
Terrance KleinApril 26, 2017
A man rides a bicycle past a billboard with an image of Pope Francis April 26 ahead of the pontiff's April 28-29 visit to Cairo. (CNS photo/Amr Abdallah Dalsh, Reuters)
“Peace be with you” was the message of the Risen Jesus to his disciples on the first Easter, and it is the message Francis will bring to the Muslim and Christian communities in this land.
Gerard O'ConnellApril 26, 2017
Pope Francis is presented with a football helmet by Michigan football team coach Jim Harbaugh during the weekly general audience at the Vatican, Wednesday, April 26, 2017. (L'Osservatore Romano/Pool Photo via AP)
Coach Jim Harbaugh presented a custom Wolverines helmet and a pair of Nike Air Jordan sneakers to Pope Francis.
Michael J. O'LoughlinApril 26, 2017
The 'Hamlet'-inspired play made the playwright Tom Stoppard an overnight sensation.
David StewartApril 26, 2017