State of Tipped Workers ALABAMA

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ALABAMA

THE STATE OF TIPPED WORKERS

Restaurant Opportunities Centers United

In Alabama there are nearly 63,000 tipped workers, and over 66% of these work in the restaurant industry. The restaurant industry employs nearly 10% of the workforce and is one of the fastest growing sectors of the US economy. Unfortunately, the restaurant industry offers several of Alabama’s lowest paid jobs. Four of the ten lowest paid occupations are in the restaurant industry, and one of these is a tipped occupation.

www.rocunited.org TIPPED WORKERS WHO WORK IN RESTAURANTS

66% LOWEST PAID

TIPPED OCCUPATIONS

SERVERS

Alabama does not have a state minimum wage TIPPED law, instead the federal minimum wage of MINIMUM WAGE $7.25 applies. The tipped minimum wage is even lower, standing at $2.13 for the last 23 years. In 1991 it was pegged at 50% of the federal minimum wage. In 1996 it was officially MINIMUM WAGE depegged from the minimum wage and has remained frozen ever since. Including tips, tipped workers in Alabama earn a median wage of only $9.00—equivalent to $18,720 for a full-time MEDIAN WAGE FOR year-round employee. However, tipped workers TIPPED WORKERS generally are allowed part-time schedules that INCLUDING TIPS vary by season. Seven states have eliminated the tipped minimum wage—in those states tipped workers receive the full minimum wage.

$2.13 $7.25 $9.00

TIPPED WORKERS AND THE RISING AMERICAN ELECTORATE

GENDER 73%

27%

The Rising American Electorate refers to the demographic groups that are growing the most rapidly, historically with lower voter participation rates, but whose growing civic engagement has been crucial in tipping the scales in recent elections. Tipped workers are primarily women, over 30% are moms, and although many are married, half of these are single moms. Although the median age for tipped workers is 30, half of them are younger. And they are racially diverse, overrepresented by Latinos, Asians, and African Americans compared to the broader workforce. They are also a highly educated group. Tipped workers are a snapshot of the RAE.

TIPPED WORKERS AND THE RISING AMERICAN ELECTORATE

AGE RACE 30

EDUCATION

44% HIGHER EDUCATION

MARITAL &

52

% of tipped

worker moms are single moms ERTY RAT

RS

ED WORKE

OV

ERTY RAT

E

30%

OR

W

R

ES

PARENTS WITH CHILDREN

KERS

PP

E

25%

TIPPED

Tipped restaurant workers live in POVERTY at 3X the rate of the Alabama workforce.

OV

TI

POVERTY

Married 35% Parents 32% Dads 27% Moms 34% Single Moms 18%

< _ 24 36% 25-34 23% 35-44 17% 45+ 25%

White 71% Black 18% Asian 6% Latino 4% Other 1%

P

STATUS

MEDIAN AGE

P

PARENTAL

TAU R ANT

ON FREE LUNCHES In states with a tipped minimum wage of $2.13,

53% WORKERS ON FOOD STAMPS

20%



WHITE

PEOPLE OF COLOR

ALL

POVERTY RATES IN $2.13 STATES

16% 25% 20% POVERTY RATES IN STATES WITH NO TIP CREDIT

13% 14% 14%

The industry projects employment will continue to grow at the rate of 14% over the next decade. HINDUSTRY PROJECTED SALES 2014 ➤ 6.6 BILLION

RAISE THE MINIMUM WAGE

Living off tips is precarious, but it doesn’t have to be this way. Raising the minimum wage and eliminating the tipped credit would provide a significant stimulus to the U.S. economy in tipped wages alone, providing a boost to local economies and the broader food industry, as well.

MINIMIM

WAGE

TIPPED

STIMULUS $10.10 $12.7 $12.00 $19.4 $15.00 $30.1 BILLION

INDUSTRY GROWTH

2X REST OF AL WORKFORCE

the poverty rates for workers of color is nearly double that of the seven states without a tipped minimum wage, with one in four living in poverty.

FOR MORE INFO rocunited.org/stateoftippedworkers/

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