You are on page 1of 2

TE X AS

THE STATE OF TIPPED WORKERS

Restaurant Opportunities Centers United

www.rocunited.org

TIPPED wORKERS wHO In Texas there are over 420,000 tipped wORK IN RESTAURANTS workers, and 65% 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 3 LOwEST PAID the economy. Unfortunately, the restaurant TIPPED OccUPATIONS industry offers several of Texass lowest paid SHAMPOOERS jobs. Five of the ten lowest paid occupations BUSSERS, RUNNERS, & are in the restaurant industry, and three bARTENDER ASSISTANTS of the ten are tipped occupations. COUNTER ATTENDANTS

65%

Texas follows federal minimum wage TIPPED guidelines. The federal minimum wage is MINIMUM wAGE $7.25, but the tipped minimum wage is even lower. It has stood at $2.13 for the last 23 years, since 1991 when it was pegged at 50% of the minimum wage. In 1996 it was ofcially MINIMUM wAGE depegged from the minimum wage and has remained frozen ever since. Including tips, tipped workers in Texas earn a median wage of only $8.00 equivalent to $16,640 for a full-time MEDIAN wAGE fOR year-round employee. However, tipped workers TIPPED wORKERS generally are allowed part-time schedules that INcLUDING TIPS vary by season. Seven states have eliminated the tipped minimum wage in those states tipped workers receive the full minimum wage.

$2.13 $7.25 $8.00

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, over 40% are moms, and although many are married, half 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.

GENDER
64%

36%

TIPPED WORKERS AND THE RISING AMERIcAN ELEcTORATE

EDUCATION

40%
HIGHER EDUcATION

PARENTAL
STATUS
Married 32% Parents 34% Dads 18% Moms 43% Single Moms 20%

MARITAL &

AGE RACE 29
MEDIAN AGE

< _ 24 37% 25-34 25% 35-44 17% 45+ 21%

46

Latino 40% White 39% Black 12% Asian 9% Other 1%

% of tipped

worker moms are single moms

POVERTY

TIPPED RESTAURANT wORKERS

live in POVERTY at 2.4X the rate of the U.S. workforce.

PP

19%
OV

OV

ERTY RAT

ED wORKE

ON fREE LUNcHES In states with a tipped minimum wage of $2.13,

PARENTS wITH cHILDREN

ES

TAU R ANT

50%
1.5x REST Of U.S. wORKfORcE
INDUSTRY GROWTH

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

17%

wORKERS ON fOOD STAMPS

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 15% over the next decade.
HINDUSTRY PROJEcTED SALES 2014 42.3 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/

23%

ERTY RAT

OR

KERS

RS E

TI
TIPPED