Restaurant Owners Fight Rise in Minimum Wage for Tipped Workers

It’s beyond comprehension and liberty-retention logic why restaurant owners, or even their workers still permit the fedgov to determine what either shall earn or wages paid. Even further, it is unlawful for the fedgov to interfere in the commerce of any private sector. Of course, the “why” the government does it is because they usurped that power from the states and authorized themselves to make private businesses their designated “tax collectors” for federal revenues.

Anyway, with restaurant worker’s tips pegged to the patron’s tabs it’s not clear why a minimum wage is not even necessary and may even reduce a workers income. Consequently, as menu prices rise (to keep the owner in business), so do the restaurant tabs, and hence tips. 

The more your predatory fedgov peels the flesh from your bones the greater pressure, threats and intimidation, they’ll press on your state governments to send in that cash.

To change your personal situation you’ll after to ask your state legislator why he hasn’t nullified these Constitutionally unlawful crimes.


Restaurant Owners Fight Rise in Minimum Wage for Tipped Workers
Tuesday, January 28, 2014
(photo: Paul Sanoya, AP)
After factoring for inflation, the federal minimum wage for workers receiving tips is a little more than $1 an hour—and yet, the restaurant industry is adamant that Congress should not approve a raise for these workers.
The last time lawmakers approved an increase in the minimum wage for waiters and waitresses was 1991: $2.13. That wage has stood since then, even though inflation has robbed nearly half its value. Today, the $2.13 is really more like $1.24.
President Barack Obama and other Democrats argue that it is time to raise the federal minimum wage for all workers, including those earning tips.
Senator Tom Harkin (D-Iowa), who is championing the cause in the Senate, says studies show many restaurant workers live below the poverty line because of the $2.13 hourly minimum.
That’s why Harkin and others want to raise the wage (for non-tipped workers) from $7.25 an hour to $10.10 an hour. For waiters, the wage would go up by 95 cents a year until it reached $7.10 an hour, and then rise annually with inflation.
But the National Restaurant Association is fiercely lobbying Congress to not change the law, claiming, as it has before, that raising the minimum wage will put a burden on restaurant owners who will have no choice but to hire fewer waiters and pass on the higher labor costs to customers in the form of pricier dishes.
The industry also claims waiters are really doing quite well financially, citing figures based on Bureau of Labor Statistics (BLS) data that show the median pay in restaurants ranges from $16 to $22 an hour.
Under current law, however, restaurant owners are required to pay a minimum of $2.13 an hour, unless a waitress or waiter’s tips results in them earning less than $7.25 an hour, in which case owners must pay more to make for the difference.
At the state level, 19 states use the federal $2.13 tip wage, while 24 states pay more. Seven states actually require waiters’ base pay to be at least the state minimum wage.
There are 3.3 million tipped workers nationwide, two million of whom are waiters and waitresses, whose median salary is $9.22 an hour including wage and tips, according to University of California, Berkeley, economist Sylvia Allegretto, who cited data from the BLS’s household survey.
-Noel Brinkerhoff
To Learn More:
Proposal to Raise Tip Wages Resisted (by Steven Greenhouse, New York Times)
Minimum Wages for Tipped Employees (U.S. Department of Labor)
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One response

  1. I recently wrote an article about how an increase in the minimum wage rate increases unemployment. You can read it here: http://wp.me/p3N9zD-4e

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