“Raise the Wage: More States Take Action to Ensure Tip Earners Receive the Minimum Wage in 2021

The federal minimum wage has been frozen at $7.25 since 2009, meaning that a majority of servers, bartenders, and other hospitality workers have faced poverty wages for more than a decade. To combat this problem, states are considering new proposals to increase their state-level minimum wages for those that work for tips such as servers, bartenders, and delivery people. The states of Illinois, Washington, and New York have already passed legislation requiring full minimum wages for employees and eliminating the “tip credit”─ a provision of the law that allows employers to pay workers lower hourly wages if they earn tips. The elimination of this tip credit and full minimum wage payment would provide increased economic security for tipped workers, especially in states with a $7.25 minimum wage. “Workers in states that have not raised their minimum wage are virtually doomed to a life of poverty,” according to Georgette Lopez, the president of the Restaurant Opportunity Centers United. “Full minimum wages, paired with increased labor law enforcement, are integral components of achieving fair wages and civil rights for the restaurant industry.” Moreover, states such as California, Oregon, Maine, Colorado, and Massachusetts are considering similar measures. These states, in particular, have all adopted individual policies in the last several years raising state-level wage floors to increase wages for all workers. These measures have proved effective to provide stability for tipped workers. Since the passage of the wage floor increases, wages for tipped employees have seen significant gains in California, Colorado, Maine, and Oregon. These gains feel particularly important in an especially uncertain time as the coronavirus pandemic has caused economic hardship and job losses for countless people. By passing legislation to ensure an increase in wages for tipped workers, states are helping alleviate some of the economic diversity felt during this crisis. As the trend of raising wages for tipped workers continues, more and more states are taking action to ensure that tipped employees have access to higher wages and greater economic security in an uncertain economy. This movement towards fair wages for tipped workers is a positive step towards ensuring the economic stability of hospitality professionals across the country. The federal minimum wage has been frozen at $7.25 since 2009, meaning that a majority of servers, bartenders, and other hospitality workers have faced poverty wages for more than a decade. To combat this problem, states are considering new proposals to increase their state-level minimum wages for those that work for tips such as servers, bartenders, and delivery people. The states of Illinois, Washington, and New York have already passed legislation requiring full minimum wages for employees and eliminating the “tip credit”─ a provision of the law that allows employers to pay workers lower hourly wages if they earn tips. The elimination of this tip credit and full minimum wage payment would provide increased economic security for tipped workers, especially in states with a $7.25 minimum wage. “Workers in states that have not raised their minimum wage are virtually doomed to a life of poverty,” according to Georgette Lopez, the president of the Restaurant Opportunity Centers United. “Full minimum wages, paired with increased labor law enforcement, are integral components of achieving fair wages and civil rights for the restaurant industry.” Moreover, states such as California, Oregon, Maine, Colorado, and Massachusetts are considering similar measures. These states, in particular, have all adopted individual policies in the last several years raising state-level wage floors to increase wages for all workers. These measures have proved effective to provide stability for tipped workers. Since the passage of the wage floor increases, wages for tipped employees have seen significant gains in California, Colorado, Maine, and Oregon. These gains feel particularly important in an especially uncertain time as the coronavirus pandemic has caused economic hardship and job losses for countless people. By passing legislation to ensure an increase in wages for tipped workers, states are helping alleviate some of the economic diversity felt during this crisis. As the trend of raising wages for tipped workers continues, more and more states are taking action to ensure that tipped employees have access to higher wages and greater economic security in an uncertain economy. This movement towards fair wages for tipped workers is a positive step towards ensuring the economic stability of hospitality professionals across the country.