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University of Wisconsin–Madison
Poverty-related issues in the news, from the Institute for Research on Poverty

Minimum Wage and Tipped Employees

Tipped workers get a raise, By Pamela M. Prah, April 21, 2014, Stateline: “Waiters, bartenders, hairdressers and other Minnesota workers who rely on tips got a big raise last week when the state guaranteed them the same $9.50 hourly minimum wage that other workers will get. Minnesota is one of five states (along with Connecticut, Delaware, Maryland and West Virginia) plus the District of Columbia to increase its hourly wage floor this year, and in four of them tipped workers also will get a raise, reflecting concern for a category of workers who are often overlooked. Of the 3.3 million workers who rely primarily on tips, about 2 million are waiters and waitresses, according to a recent White House report…”