NE W yor K

THE STATE OF TIPPED WORKERS

Restaurant Opportunities Centers United

www.rocunited.org rocny.org
TIPPED worKErS wHo worK IN rESTAurANTS

In New York there are nearly 400,000 tipped workers, and over 50% of these work in the restaurant industry. The restaurant industry employs nearly 10% of the workforce and is one of the fastest growing sectors of the economy. Unfortunately, the restaurant industry offers several of New Yorks lowest paid jobs. Five of the ten lowest paid occupations are in the restaurant industry, and two of these are tipped occupations.

51%
TIPPED occuPATIoNS
BuSSErS, ruNNErS, & bArTENDEr ASSISTANTS SERVERS

2 LowEST PAID

In 2013, Governor Cuomo agreed to raise the TIPPED minimum wage to $9.00 over three years, but MINIMuM wAGE excluded tipped food service workers from the raise. The tipped minimum wage for these workers is just $5.00. Including tips, tipped restaurant workers in New York earn a median MINIMuM wAGE wage of only $8.75 equivalent to $18,200 for a full-time year-round employee. However, tipped workers generally are allowed part-time schedules that vary by season. The majority of MEDIAN wAGE for New Yorks tipped restaurant workers, including TIPPED worKErS 62% of servers, are women, magnifying the INcLuDING TIPS gender gap. Seven states have eliminated the tipped minimum wage in those states, tipped workers receive the full minimum wage.

$5.00 $9.00 $8.75

TIPPED WorKErS AND THE RISING AMErIcAN ELEcTorATE

The Rising American Electorate refers to the demographic groups that are growing the most rapidly, historically with lower voter participation rates, but whose growing civic engagement has been crucial in tipping the scales in recent elections. Tipped workers are primarily women, nearly 40% are moms, and although many are married, half of these are single moms. Although the median age for tipped workers is 35, half of them are younger. And they are racially diverse, overrepresented by Latinos, Asians, and African Americans compared to the broader workforce. They are also a highly educated group. Tipped workers are a snapshot of the RAE.

GENDEr
50%

50%

TIPPED WorKErS AND THE RISING AMErIcAN ELEcTorATE

EDUCATIoN

40%
HIGHEr EDucATIoN

PArENTAL
STATuS
Married 40% Parents 34% Dads 32% Moms 36% Single Moms 16%

MArITAL &

AGE RACE 35
MEDIAN AGE

< _ 24 24% 25-34 25% 35-44 18% 45+ 34%

45

White 45% Latino 26% Black 13% Asian 15% Other 1%

% of tipped

worker moms are single moms

POVERTY

TIPPED rESTAurANT worKErS

live in PovErTy at 2.3X the rate of the U.S. workforce.

PP

15%
ES

OV

ERTy RAT

ED worKE

oN frEE LuNcHES In states with a tipped minimum wage of $2.13,

PArENTS wITH cHILDrEN

TAU R ANT

47%

the poverty rates for workers of color is nearly double that of the seven states without a tipped minimum wage, with one in four living in poverty.
White PeOple OF COlOr All

18%
INDUSTRY GROWTH

worKErS oN fooD STAMPS

2x rEST of U.S. worKforcE

PovErTy rATES IN $2.13 STATES

16% 25% 20%

PovErTy rATES IN STATES wITH No TIP crEDIT

13% 14% 14%

The industry projects employment will continue to grow at the rate of 6% over the next decade.
HINDuSTry ProJEcTED SALES 2014 34.6 bILLIoN

RAISE THE MINIMuM WAGE

MINIMIM

Living off tips is precarious, but it doesnt have to be this way. Raising the minimum wage and eliminating the tipped credit would provide a signicant stimulus to the U.S. economy in tipped wages alone, providing a boost to local economies and the broader food industry, as well.

WAGE

STIMuLuS $10.10 $12.7 $12.00 $19.4 $15.00 $30.1

BILLION

TIPPED

FOR MORE INfO rocunited.org/stateoftippedworkers/

18%

OV

ERTy RAT

or

KErS

rS E

TI
TIPPED