State of Tipped Workers - OHIO

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OHIO

THE STATE OF TIPPED WORKERS

Restaurant Opportunities Centers United

In Ohio there are over 194,000 tipped workers, and 67% 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 Ohio’s lowest paid jobs. Seven of the ten lowest paid occupations are in the restaurant industry, and three of these are tipped occupations. The state minimum wage is $7.95, but the tipped minimum wage is even lower at only $3.98. The minimum wage increases annually with inflation due to a voter supported ballot initiative. However, including tips, tipped workers in Ohio earn a median wage of only $8.00 — equivalent to $16,640 for a fulltime year-round employee. 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.

www.rocunited.org TIPPED WORKERS WHO WORK IN RESTAURANTS

67% 3 LOWEST PAID

TIPPED OCCUPATIONS COUNTER ATTENDANTS

SERVERS BUSSERS, RUNNERS, AND BARTENDER ASSISTANTS

TIPPED MINIMUM WAGE

$3.98

MINIMUM WAGE

$7.95

MEDIAN WAGE FOR TIPPED WORKERS INCLUDING TIPS

$7.85

TIPPED WORKERS AND THE RISING AMERICAN ELECTORATE

GENDER 74%

26%

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, nearly 40% are moms, and although many are married, nearly half of these are single moms. Although the median age for tipped workers is 29, 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 29

EDUCATION

59% HIGHER EDUCATION

MARITAL &

worker moms are single moms

2X REST OF OHIO WORKFORCE

RS

P

18%

OV

ERTY RAT

P

23%

E

WORKERS ON FOOD STAMPS

ED WORKE

OR

In states with E S T AURANT 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. R

35%

PP

TIPPED

PARENTS WITH CHILDREN

ERTY RAT

E

live in POVERTY at 3X the rate of the Ohio workforce.

OV

19%

TIPPED RESTAURANT WORKERS

ON FREE LUNCHES



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 6% over the next decade. HINDUSTRY PROJECTED SALES 2014 ➤ 17.8 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

48

% of tipped

TI

POVERTY

Married 31% Parents 30% Dads 14% Moms 36% Single Moms 17%

< _ 24 35% 25-34 25% 35-44 15% 45+ 25%

White 83% Black 8% Asian 4% Latino 3% Other 2%

KERS

STATUS

MEDIAN AGE

W

PARENTAL

FOR MORE INFO rocunited.org/stateoftippedworkers/

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