South Dakota follows federal minimum wage

guidelines. The federal minimum wage is $7.25,

but the tipped minimum wage is even lower. It
has stood at $2.13 for the last 23 years. In 1991
it was pegged at 50% of the federal minimum
wage. In 1996 it was ofcially depegged from the
minimum wage and has remained frozen ever
since. Including tips, tipped workers in South
Dakota earn a median wage of only $7.95
equivalent to $16,536 for a full-time year-round
employee. However, tipped workers generally
are allowed part-time schedules that vary by
season. Seven states have eliminated the tipped
minimum wage in those states tipped workers
receive the full minimum wage.
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, over 20% are moms,
and although many are married, one-third of
these are single moms. Although the median
age for tipped workers is 29, 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.
TIPPED WORKERS AND THE RISING AMERICAN ELECTORATE
THE STATE
OF TIPPED
WORKERS
In South Dakota there are nearly 13,000
tipped workers, and 63% 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
US economy. Unfortunately, the restaurant
industry offers several of South Dakotas
lowest paid jobs. Six of the ten lowest paid
occupations are in the restaurant industry,
and three of these are tipped occupations.
3 LOWEST PAID
TIPPED OCCUPATIONS
TIPPED
MINIMUM WAGE
$2.13
MINIMUM WAGE
$7.25
MEDIAN WAGE FOR
TIPPED WORKERS
INCLUDING TIPS
$7.95
GENDER
76%
2
4
%
TIPPED WORKERS WHO
WORK IN RESTAURANTS
63%
Restaurant Opportunities Centers United
www.rocunited.org
BUSSERS, RUNNERS, AND
BARTENDER ASSISTANTS
SERVERS
COUNTER ATTENDANTS
SOUT H DAKOTA
In states with a tipped minimum wage of $2.13,
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
POVERTY RATES IN $2.13 STATES
16% 25% 20%
POVERTY RATES IN STATES WITH NO TIP CREDIT
13% 14% 14%
TIPPED WORKERS AND THE RISING AMERICAN ELECTORATE
White 85%
Latino 7%
Other 7%
Asian 2%
Black 1%
<_
24 40%
25-34 16%
35-44 19%
45+ 25%
RACE
AGE
HIGHER EDUCATION
EDUCATION
PARENTS WITH CHILDREN
ON FREE LUNCHES
44%
MARITAL &
PARENTAL
STATUS
33
%
Married 30%
Parents 20%
Dads 8%
Moms 23%
Single Moms 8%
P
O
V
E
R
T
Y
RAISE THE MINIMUM WAGE
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.
FOR MORE INFO rocunited.org/stateoftippedworkers/
The industry projects employment will continue
to grow at the rate of 10% over the next decade.
H
INDUSTRY PROJECTED SALES 2014

1.1 BILLION
B
I
L
L
I
O
N
I
N
D
U
S
T
R
Y

G
R
O
W
T
H
36%
P
O
V
E
R
TY

R
A
T
E
P
O
V
E
R
TY

R
A
T
E
T
I
P
P
E
D

R
E
S
T
A
URA
N
T

W
O
R
K
E
R
S
T
I
P
P
E
D

WO
R
K
E
R
S
40
%
26
%
WORKERS ON
FOOD STAMPS
1.2X REST OF SD
WORKFORCE
9%
29
MEDIAN AGE
of tipped
worker moms
are single moms
MINIMIM
WAGE
$10.10
$12.00
$15.00
TIPPED
STIMULUS
$12.7
$19.4
$30.1
TIPPED RESTAURANT WORKERS
live in POVERTY
at 5X the rate of the
South Dakota workforce.