Minimum Wage for Tipped Workers

Raising base wages for tipped employees to minimum wage grows restaurant sales and helps retain employees. 

Subminimum wages for tipped workers still exist in 43 states, allowing a base cash wage as low as $2.13 per hour. This policy affects hundreds of thousands of employees across the country, an overwhelming majority of whom are women and people of color. 

Research finds that passing a policy to phase out the subminimum wage for tipped workers can help end a legacy of slavery, increase wages for workers who are overwhelmingly women and disproportionately people of color, significantly reduce sexual harassment in the restaurant industry, expand employment opportunities for youth, and lead to a stronger restaurant industry overall.

Phasing out subminimum wage for tipped workers is a win-win.