On Thursday, April 30th, the US Senate is expected to vote on a bill to increase the federal minimum wage by 40 percent to $10.10 an hour and increase the tipped minimum wage by 232 percent to $7.07 an hour. Labor union-backed advocacy groups have been repeating the myth that some tipped employees are “stuck” earning wages below the federal minimum.
In full-page advertisements in Politico, Roll Call, and The Hill, the Employment Policies Institute is debunking this myth. Not only do tipped employees earn at least the federal minimum in take-home pay–they average over $13 an hour in total compensation. Top earners bring in $25 an hour or more.