In states and cities across the nation we’re seeing incredible momentum to raise the minimum wage. These efforts have meant that millions of workers have gotten a raise thanks to efforts by policymakers and the voting public. Nine Champions of Change who have played key roles in creating and sustaining this momentum were honored today at the White House, including restaurant worker Alia Todd and restaurateur Buz Grossberg.
But despite this amazing progress, one group has too often been left behind: millions of tipped workers who earn a subminimum wage. In crafting minimum wage increases, states and cities have frequently left the minimum wage for tipped workers below the full-wage rate paid to other workers − sometimes far below. President Obama and Secretary Perez support legislation that would gradually eliminate the tipped minimum wage. There are many reasons to do so.
What is the tipped minimum wage?Federal law and all but seven states allow employers to pay a subminimum wage to workers who earn tips. The current federal tipped minimum wage has not been increased since 1991 and still stands at just $2.13 per hour. States’ subminimum wages for tipped workers vary, but almost all are well below the full federal minimum wage of $7.25 per hour. Employers are required to ensure that workers’ wages equal at least the full minimum wage after tips are included, but that doesn’t always happen....
Read More Here: