State of Tipped Workers - IOWA

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Restaurant Opportunities Centers United
www.rocunited.org
BUSSERS, RUNNERS, AND
BARTENDER ASSISTANTS
The state minimum wage is $7.25, but the
tipped minimum wage is even lower at
only $4.35. Including tips, tipped workers
in Iowa earn a median wage of only $8.00
— equivalent to $16,640 for a full-time
year-round employee. However, tipped
workers generally are allowed part-time
schedules that vary by season. Seven states
have eliminated the tipped minimum wage
— in those states tipped workers receive the
full minimum wage. Higher wages reduce
turnover and pour millions of dollars back
into the local economy.
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, more than
half of these are single moms. Although the
median age for tipped workers is 26, 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
THE STATE
OF TIPPED
WORKERS
In Iowa there are nearly 46,000 tipped workers,
and 69% 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 Iowa’s lowest paid jobs. Four of
the ten lowest paid occupations are in the
restaurant industry, and one of these —
the second lowest paid occupation — is
a tipped occupation.
TIPPED
MINIMUM WAGE
$4.35
MINIMUM WAGE
$7.25
MEDIAN WAGE FOR
TIPPED WORKERS
INCLUDING TIPS
$8.00
GENDER
79%
2
1
%
TIPPED WORKERS WHO
WORK IN RESTAURANTS
69%
LOWEST PAID
TIPPED OCCUPATION
I OWA
In states with a tipped minimum wage of $2.13,
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.
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%
TIPPED WORKERS AND THE RISING AMERICAN ELECTORATE
White 84%
Asian 5%
Latino 5%
Black 4%
Other 2%
<_
24 44%
25-34 18%
35-44 15%
45+ 24%
RACE
AGE
HIGHER EDUCATION
EDUCATION
PARENTS WITH CHILDREN
ON FREE LUNCHES
43%
MARITAL &
PARENTAL
STATUS
59
%
Married 24%
Parents 26%
Dads 8%
Moms 31%
Single Moms 18%
P
O
V
E
R
T
Y
TIPPED RESTAURANT WORKERS
live in POVERTY
at 4x the rate
of the Iowa workforce.
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.
FOR MORE INFO rocunited.org/stateoftippedworkers/
The industry projects employment will continue
to grow at the rate of 8% over the next decade.
H
INDUSTRY PROJECTED SALES 2014

3.5 BILLION
B
I
L
L
I
O
N
I
N
D
U
S
T
R
Y

G
R
O
W
T
H
28%
P
O
V
E
R
TY

R
A
T
E
P
O
V
E
R
TY

R
A
T
E
T
I
P
P
E
D

R
E
S
T
A
URA
N
T

W
O
R
K
E
R
S
T
I
P
P
E
D

WO
R
K
E
R
S
32
%
25
%
WORKERS ON
FOOD STAMPS
2X REST OF IOWA
WORKFORCE
23%
26
MEDIAN AGE
of tipped
worker moms
are single moms
MINIMIM
WAGE
$10.10
$12.00
$15.00
TIPPED
STIMULUS
$12.7
$19.4
$30.1

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