Waiting for Change: The $2.13 Sub-minimum Wage Sylvia A. - - PowerPoint PPT Presentation
Waiting for Change: The $2.13 Sub-minimum Wage Sylvia A. - - PowerPoint PPT Presentation
Waiting for Change: The $2.13 Sub-minimum Wage Sylvia A. Allegretto, PhD Institute for Research on Labor & Employment University of California, Berkeley $8.00 Federal MW $7.25 $7.00 $6.00 $5.00 Tip credit $5.12 $4.00 71% $3.00 40%
$0.00 $1.00 $2.00 $3.00 $4.00 $5.00 $6.00 $7.00 $8.00
Tipped wage $2.13 Federal MW $7.25 Tip credit $5.12
Allegretto 2013
50% 40%
71%
$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 2013
$2.13 $2.63 $3.63 $5.69 $9.19 $5.12 $5.37 $3.62 $2.56 $0 $1 $2 $3 $4 $5 $6 $7 $8 $9 $10
Federal situation Massachusetts Maryland Connecticut Washington State
Tip Credit Tipped Wage
Allegretto 2013
80% 90% 100% 110% 120% 130% 140% 150% 160% 170% 180%
Full-service restaurants Private sector
Allegretto 2013 Source: BLS QCEW data
0% 10% 20% 30% 40% 50% 60% 70% 80% All workers Tipped workers Waiters Male Female
Allegretto 2013 Source: BLS CPS data
$0 $2 $4 $6 $8 $10 $12 $14 $16 $18 $20 All workers Tipped workers Waiters All Male Female
Allegretto 2013 Source: BLS CPS data
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
Allegretto 2013 Source: BLS March CPS data
Allegretto 2013
8.4% 15.7% 14.5% 0% 2% 4% 6% 8% 10% 12% 14% 16% 18% Private Sector Restaurant Industry Tipped workers
Source: BLS CPS data
70% 65% 29% 31% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Health care Retirement Private sector Acc & Food Svcs
Allegretto 2013 Source: BLS NCS data
Growing sector of tipped workers
- low wage, low benefits, high poverty
- women, less educated & disproportionally young
▪ but, 45% are at least 30 years old (33% waiters)
- epitome of ‘Just-In-Time’ employment
▪ creates instability
Policy areas
- reconnect TW to MW
- strengthen & enforce laws to protect workers
- improve job quality and benefits
Allegretto 2013