Federal Minimum & Subminimum Wages: Dynamics & Importance of - - PowerPoint PPT Presentation

▶

Aug 19, 2023 238 likes •376 views

Federal Minimum & Subminimum Wages: Dynamics & Importance of the Two Tiered System Sylvia A. Allegretto, PhD Co-director: Center on Wage & Employment Dynamics Institute for Research & Labor Employment University of California,

SLIDE 1

Federal Minimum & Subminimum Wages:

Dynamics & Importance of the Two Tiered System

Sylvia A. Allegretto, PhD Co-director: Center on Wage & Employment Dynamics Institute for Research & Labor Employment University of California, Berkeley

SLIDE 2

$0.00 $1.00 $2.00 $3.00 $4.00 $5.00 $6.00 $7.00 $8.00

Federal subminimum wage: $2.13 since 1991 Federal minimum wage: $7.25 Tip credit $5.12 or 71%

Allegretto 2014

50% 40%

The tip credit as a percent of the minimum wage

SLIDE 3

$0.00 $1.00 $2.00 $3.00 $4.00 $5.00 $6.00 $7.00 $8.00 $9.00 $10.00

Customer portion of the wage bill is 71% Employer part of the wage bill is 29%

Allegretto 2014

SLIDE 4

Allegretto 2014

Teens, 12.5% Age 20 to 29, 36.5% Age 30 to 39, 16.6% Age 40 to 54, 20.8% Age 55+, 13.7%

Source: David Cooper, Economic Policy Institute

SLIDE 5

 Establishes a more meaningful wage floor  Reconnects the TW to the MW  Prevents erosion of the wage floors  Reduces the ranks of the working poor  Mitigates inequality  Lessens the gender pay gap  It is FAIR  And, it will not cause job loss

Allegretto 2014

SLIDE 6

SLIDE 7

Allegretto 2014

SLIDE 8

$2.13 $2.63 $3.63 $7.00 $9.32 $5.12 $5.37 $3.62 $0.25 $0 $1 $2 $3 $4 $5 $6 $7 $8 $9 $10

Federal Massachusetts Maryland Hawaii Washington State

Tip Credit Tipped Wage

$8.00 $9.32 $7.25 $7.25

Allegretto 2014

$7.25

SLIDE 9

80% 90% 100% 110% 120% 130% 140% 150% 160% 170% 180%

Full-service restaurants Private sector

Allegretto 2014 Source: BLS QCEW data.

SLIDE 10

0% 20% 40% 60% 80% 100% 120% 140% Private employment Limited service restaurants

Allegretto 2014 Source: QCEW 1990q1 to 2011q4.

SLIDE 11

51.4% 32.0% 27.6% 48.6% 68.0% 72.4%

0% 10% 20% 30% 40% 50% 60% 70% 80% All workers Tipped workers Waiters Male Female

Source: Allegretto & Filion, EPI 2011. BLS CPS data.

SLIDE 12

6.7% 16.1% 19.4% 6.0% 14.6% 16.2% 6.7% 12.1% 13.5%

0% 5% 10% 15% 20% 25% All workers Tipped workers Waiters Full Tip Credit Partial Tip Credit No Tip Credit

Source: Allegretto & Filion, EPI 2011. BLS March CPS data.

SLIDE 13

71% 62% 65% 37% 29% 32%

0% 10% 20% 30% 40% 50% 60% 70% 80%

Health care Paid sick days Retirement

Private sector Acc & Food Svcs

Allegretto 2014

Source: BLS NCS data.