www.rocunited.org
TippeD worKers wHo worK iN resTAurANTs
In Michigan there are over 160,000 tipped workers, and nearly 70% 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 economy. Unfortunately, the restaurant industry offers several of Michigan’s lowest paid jobs. Six of the ten lowest paid occupations are in the restaurant industry, and four of the ten are tipped occupations. The state minimum wage is $7.40, but the tipped minimum wage is even lower at only $2.65. Including tips, tipped workers in Michigan earn a median wage of only $7.75 – equivalent to $16,120 for a fulltime 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.
60%
TippeD occupATioNs
SERVERS PorTers AND BeLLHops SHAMpooers
3 LowesT pAiD
TippeD MiNiMuM wAGe
$2.65 $7.40 $7.75
MiNiMuM wAGe
MeDiAN wAGe for TippeD worKers iNcLuDiNG Tips
TippeD WorKers AND THe RisiNG AMericAN ELecTorATe
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 28, 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.
GeNDer
74%
26%
TippeD WorKers AND THe RisiNG AMericAN ELecTorATe
EDUCATioN
45%
HiGHer eDucATioN
PAreNTAL
STATus
Married 26% Parents 29% Dads 13% Moms 34% Single Moms 16%
MAriTAL &
AGE RACE 28
MeDiAN AGe
< _ 24 41% 25-34 23% 35-44 12% 45+ 24%
45
White 80% Latino 6% Black 9% Asian 3% Other 1%
% of tipped
worker moms are single moms
POVERTY
TippeD resTAurANT worKers
oN free LuNcHes In states with a tipped minimum wage of $2.13,
pAreNTs wiTH cHiLDreN
ES
TAU R ANT
52%
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
20%
INDUSTRY GROWTH
worKers oN fooD sTAMps
2x resT of U.S. worKforce
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 6% over the next decade.
HINDusTrY proJecTeD sALes 2014 ➤ 13.5 BiLLioN
RAise THe MiNiMuM WAGe
MiNiMiM
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.