Tuesday, June 11, 2013

MassBudget: Declining value of the minimum wage for tipped workers

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Minimum Wage for Tipped Workers
A strong minimum wage helps workers support their families, and it can bolster our economy by increasing the amount of money workers have to spend at local businesses.

In the case of workers who regularly earn tips, like waiters and hairdressers, employers are only required to pay what's called the "tipped minimum wage," which in Massachusetts is well below the regular minimum wage (it is currently $2.63). The law then requires that for any such worker, the combination of hourly pay and tips must be at least as high as the full minimum wage. Our new factsheet, "The Declining Value of the Tipped Minimum Wage in Massachusetts," tracks the history of the tipped minimum wage and finds that:

  • Since 1968, the value of the tipped minimum wage has fallen by 58%

  • Massachussets has the lowest tipped minimum wage in New England

  • Nationwide, about 73% of all tipped workers are women

  • In those states where the tipped minimum wage is above the federal minimum, the number of tipped workers living in poverty is lower. And the difference is especially dramatic in states where the tipped minimum wage is the same as the regular minimum wage.

"The Declining Value of the Tipped Minimum Wage in Massachusetts" is part of MassBudget's ongoing analysis of the Massachusetts minimum wage. Other recent reports include:


The Massachusetts Budget and Policy Center (MassBudget) produces policy research, analysis, and data-driven recommendations focused on improving the lives of low- and middle-income children and adults, strengthening our state's economy, and enhancing the quality of life in Massachusetts.

MASSACHUSETTS BUDGET AND POLICY CENTER
15 COURT SQUARE, SUITE 700
BOSTON, MA 02108
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Massachusetts Budget and Policy Center | 15 Court Square | Suite 700 | Boston | MA | 02108




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