M A R Y LAND

THE STATE OF TIPPED WORKERS

Restaurant Opportunities Centers United

www.rocunited.org

In Maryland there are 100,000 tipped workers, and 60% 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 Marylands lowest paid jobs. Five of the ten lowest paid occupations are in the restaurant industry, and three of these are tipped occupations. The state minimum wage is $7.25, but the tipped minimum wage is even lower at only $3.63. Including tips, tipped workers in Maryland earn a median wage of only $8.75 equivalent to $18,200 for a fulltime 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. Higher wages reduce turnover and pour millions of dollars back into the local economy.

TIPPeD wOrKers wHO wOrK IN resTAUrANTs

60%
TIPPeD OCCUPATIONs
SERVERS BArTeNDers BUssers, rUNNers, & bArTeNDer AssIsTANTs

3 LOwesT PAID

TIPPeD mINImUm wAGe

$3.63 $7.25 $8.75

MINImUm wAGe

MeDIAN wAGe fOr TIPPeD wOrKers INCLUDING TIPs

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, close to 40% are moms, and although many are married, half of these are single moms. Although the median age for tipped workers is 32, 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
67%

33%

TIPPeD WOrKers AND THe RIsING AmerICAN ELeCTOrATe

EDUCATION

41%
HIGHer eDUCATION

PAreNTAL
STATUs
Married 32% Parents 30% Dads 21% Moms 35% Single Moms 14%

MArITAL &

AGE RACE 32
MeDIAN AGe

< _ 24 34% 25-34 21% 35-44 19% 45+ 26%

40

White 54% Black 27% Asian 10% Latino 8% Other 1%

% of tipped

worker moms are single moms

POVERTY

TIPPeD resTAUrANT wOrKers

ON free LUNCHes In states with a tipped minimum wage of $2.13,

PAreNTs wITH CHILDreN

ES

TAU R ANT

53%
wOrKers ON fOOD sTAmPs

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

15%

POverTy rATes IN $2.13 sTATes

16% 25% 20%

POverTy rATes IN sTATes wITH NO TIP CreDIT

2x resT Of U.S. wOrKfOrCe

13% 14% 14%

INDUSTRY GROWTH

The industry projects employment will continue to grow at the rate of 7% over the next decade.
HINDUsTry PrOJeCTeD sALes 2014 10.6 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/

Or

Kers

live in POverTy at 3X the rate of the U.S. workforce.

PP

12%
OV

OV

ERTy RAT

ED wOrKe

13%

ERTy RAT

rs E

TI
TIPPED