Much That Is Hidden

Federal minimum wage for most workers went up to $7.25 per hour on July 24 (the last of a series of increases over the past three years). But workers who receive more than $30 per month in tips have a different minimum - just $2.13 per hour, a wage that hasn’t been increased in EIGHTEEN YEARS ! !

Tipped workers did have their minimum wage linked to the standard minimum until Congress axed that requirement in 1996. Rep. Donna Edwards (D-MD) has now introduced H.R. 2570, the Working for Adequate Gains for Employment in Services (WAGES - gotta love those congressional acronyms) Act, which would set the minimum wage for tipped workers at 70% of the standard minimum wage (or $5.08 per hour). This would end the absurd situation tipped workers are in today where an increase in the minimum wage doesn’t result in an increase in their minimum wage. Many servers must also tip share with bartenders and table bussers, so when they don't get a good tip (or on occasion none at all) it ends up costing them money to work because they are required by the IRS to claim 11 percent of their sales as tipped income.

Friendly reminder: if you can't afford to tip your server at least 15-20 percent (for good service, of course), then you can't afford to eat out.

* Tipping
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Labels: me, money, politix, work