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

Discussions that lead to cooperative compliance are better than banning speech.
Ellen K. BoegelMay 26, 2017
Pope Francis talks with U.S. President Donald Trump during a private audience at the Vatican May 24 (CNS photo/Paul Haring).
I am praying that Pope Francis’ words have a lasting impact on the president.
Zac DavisMay 26, 2017
U.S. Secretary of Education Betsy DeVos shakes hands with Alexis Stratton, a freshman at Providence Cristo Rey High School in Indianapolis, during the secretary's May 23 visit to the school. (CNS photo/John Shaughnessy, The Criterion)
The secretary of education arrived in Indiana's capital to address the national policy summit of the American Federation for Children, a national advocacy organization for school choice.
Cardinals attend a consistory led by Pope Francis as he names 20 new cardinals at the Vatican on Feb. 12, 2015. Photo courtesy of Reuters/Alessandro Bianchi
Francis has also overturned the tradition of choosing bishops who are in charge of prestigious dioceses or Vatican departments as cardinals.