The Truth About the Tipped Wage

Are tipped employees “stuck” earning $2.13?

Today the Employment Policies Institute (EPI) released a new video that calls out the misleading claims being made by President Obama and his allies in Congress in their effort to increase the tipped minimum wage by 232 percent.

Census Bureau data show that, even in states where the tipped minimum wage is set equal to the federal minimum wage, tipped employees report over $13 an hour in total compensation, with top earners bringing in $25 an hour or more.

As the video explains, some states have dramatically increased their tipped minimum wage, and research published in the Southern Economic Journal suggests that employees have suffered as a consequence. When restaurants have been unable to pay for the increased salaries with higher menu prices, they’ve stopped hiring bus boys, cut back on wait staff, or switched to low-cost service alternatives such as iPad-style devices replacing cashiers.

The Truth About the Tipped Wage