P ENNS Y LVANIA

THE STATE OF TIPPED WORKERS

Restaurant Opportunities Centers United

www.rocunited.org
TIppED wORKERS wHO wORK IN RESTAURANTS

In Pennsylvania there are nearly 220,000 tipped workers, and over 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 the economy. Unfortunately, the restaurant industry offers several of Pennsylvania’s lowest paid jobs. Five of the ten lowest paid occupations are in the restaurant industry, and two of these are tipped occupations. The state minimum wage is $7.25, but the tipped minimum wage is even lower at only $2.83. Including tips, tipped workers in Pennsylvania earn a median wage of only $8.25 – equivalent to $17,160 for a full-time year-round employee. However, tipped workers generally are allowed parttime 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.

66%
TIppED OccUpATIONS
BUSSERS, RUNNERS, & bARTENDER ASSISTANTS COUNTER ATTENDANTS

2 LOwEST pAID

TIppED MINIMUM wAGE

$2.83 $7.25 $8.25

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, over 30% are moms, and although many are married, half of these are single moms. Although the median age for tipped workers is 30, 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
73%

27%

TIppED WORKERS AND THE RISING AMERIcAN ELEcTORATE

EDUCATION

42%
HIGHER EDUcATION

PARENTAL
STATUS
Married 31% Parents 30% Dads 17% Moms 34% Single Moms 14%

MARITAL &

AGE RACE 30
MEDIAN AGE

< _ 24 35% 25-34 23% 35-44 14% 45+ 29%

42

White 79% Black 8% Asian 7% Latino 6% Other 0%

% of tipped

worker moms are single moms

POVERTY

TIppED RESTAURANT wORKERS

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

PP

17%
ES

P

OV

ERTy RAT

E

ED wORKE

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

pARENTS wITH cHILDREN

TAU R ANT

32%

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

14%
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 5% over the next decade.
HINDUSTRy pROJEcTED SALES 2014 ➤ 18.3 bILLION

RAISE THE MINIMUM WAGE

MINIMIM

Living off tips is precarious, but it doesn’t have to be this way. Raising the minimum wage and eliminating the tipped credit would provide a significant 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/

w

20%

P

OV

ERTy RAT

OR

KERS

RS E

TI
TIPPED

R