Anybody else find this pretty deplorable?
NEW YORK (Reuters) - U.S. service sector employees who receive tips have been excluded from the latest hike in the federal minimum wage that kicked in on Friday, leaving the public to cover the cost of their healthcare, according to economists and advocates.
The federal minimum wage on Friday rose to $7.25 from $6.55. But only seven states guarantee tipped workers the minimum wage, according to a report by the National Employment Law Project, a New York-based advocacy group for low-income workers.
The minimum wage for so-called "tipped" workers has been frozen at $2.13 an hour since 1991, the report found. [Emphasis added--E.M.]
Waitresses and waiters, who comprise the majority of tip-receiving workers, have nearly three times the poverty rate of the nation's workforce, it said.
Wait staff are twice as likely to go without health insurance, partly because few employers help them pay for a health plan.
I know that real-life wages for wait staff may be higher than that minimum number in many markets, but the idea that wait staff are left out of the minimum wage is the one that gets me. Workers in high-end restaurants may be fine, but there are a lot of workers in casual dining places who probably aren't making enough in tips to make up for the difference between their wages and a decent living; and though in some areas wait staff may command more than minimum wage, in other, smaller towns and areas this likely isn't the case.
And in an economic downturn, when people cut back on eating out, order conservatively from a selection of middle or lower-priced menu items, skip appetizers or desserts, and otherwise restrain their spending, people who are dependent on tips as part of their livelihood are going to hurt even more.
I've personally never worked waiting tables at a restaurant; while I did work at a couple of mall-counter places in my college days, these weren't tip-based enterprises and I always earned minimum wage, or just slightly better. So I don't know what it's like to be dependent on tips as part of my pay.
But I do know that people gripe, all the time, about tipping wait staff and how much ought to be left. My husband is of the "figure 20% and then round up to the nearest dollar or two" sort, but both he and I have been surprised, on occasion, to be out eating and to see people put down a dollar or so per person after consuming a ten or fifteen dollar meal each. And I've seen attitudes expressed on the Internet to the effect that a ten-percent tip is perfectly fine for ordinary service, and that going "up" to fifteen or twenty percent should be reserved for extraordinary service.
Frankly, I think wait staff ought to be guaranteed minimum wage in the first place, and that tips should then help them make up the difference between minimum wage and a decent living.