Grayson Introduces Bill to Raise Minimum Wage for Tipped Workers

Press Release

Today, Congressman Alan Grayson (D-FL09) introduced the One Does Not Live on Tips Alone Act, a bill that will raise the minimum wage for tipped workers nationwide to the federal minimum wage.

Although the federal minimum wage currently equals $7.25 per hour, federal law permits employers to pay tipped workers a base wage of only $2.13 per hour, provided that tips make up the difference.

While some tipped workers may earn enough in tips to bring their hourly earnings well above the minimum wage, the vast majority of tipped workers earn low wages, just above the minimum wage. According to a recent study by the Economic Policy Institute, tipped workers are more than twice as likely to fall below the federal poverty line than other workers, and nearly three times as likely to rely on food stamps.

"A tip should be exactly that -- something extra. You shouldn't have to give up part of your wages to get a tip, because then it's not really a tip at all," said Congressman Alan Grayson. "Furthermore, Orlando has the lowest wages of all the top 50 metro areas in the United States, in large part because of the double standard for tipped workers."

Tips are notoriously erratic, varying from shift to shift and from season to season. Tipped workers are hit especially hard during economic downturns, as financially squeezed consumers often have no choice but to leave smaller tips, or cut back on spending at restaurants or salons altogether.

Source