Waiting for Change: The $2.13 Sub-minimum Wage Sylvia A. Allegretto, PhD Institute for Research on Labor & Employment University of California, Berkeley
$8.00 Federal MW $7.25 $7.00 $6.00 $5.00 Tip credit $5.12 $4.00 71% $3.00 40% $2.00 Tipped wage $2.13 50% $1.00 $0.00 Allegretto 2013
$10.00 $9.00 $8.00 $7.00 $6.00 $5.00 Customer portion of $4.00 the wage bill is 71% $3.00 $2.00 Employer part of the $1.00 wage bill is 29% $0.00 Allegretto 2013
$10 Tip Credit Tipped Wage $9 $8 $7 $2.56 $6 $3.62 $5.37 $5 $5.12 $9.19 $4 $3 $5.69 $2 $3.63 $2.63 $2.13 $1 $0 Federal situation Massachusetts Maryland Connecticut Washington State Allegretto 2013
180% 170% Full-service restaurants 160% Private sector 150% 140% 130% 120% 110% 100% 90% 80% Source: BLS QCEW data Allegretto 2013
80% 70% 60% Male 50% Female 40% 30% 20% 10% 0% All workers Tipped workers Waiters Source: BLS CPS data Allegretto 2013
$20 $18 $16 All $14 Male $12 Female $10 $8 $6 $4 $2 $0 All workers Tipped workers Waiters Source: BLS CPS data Allegretto 2013
25% Full Tip Credit Partial Tip Credit 19.4% 20% No Tip Credit 16.2% 16.1% 14.6% 15% 13.5% 12.1% 10% 6.7% 6.7% 6.0% 5% 0% All workers Tipped workers Waiters Source: BLS March CPS data Allegretto 2013
18% 15.7% 16% 14.5% 14% 12% 10% 8.4% 8% 6% 4% 2% 0% Private Sector Restaurant Industry Tipped workers Source: BLS CPS data Allegretto 2013
100% 90% 80% 70% 70% 65% 60% Private sector 50% Acc & Food Svcs 40% 31% 29% 30% 20% 10% 0% Health care Retirement Source: BLS NCS data Allegretto 2013
Growing sector of tipped workers low wage, low benefits, high poverty women, less educated & disproportionally young ▪ but, 45% are at least 30 years old (33% waiters) epitome of ‘Just-In-Time’ employment ▪ creates instability Policy areas reconnect TW to MW strengthen & enforce laws to protect workers improve job quality and benefits Allegretto 2013
Waiting for Change: The $2.13 Sub-minimum Wage Sylvia A. Allegretto, PhD Institute for Research on Labor & Employment University of California, Berkeley
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