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TippeD worKers wHo worK iN resTAurANTs
In Michigan there are over 160,000 tipped workers, and nearly 70% 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 Michigans lowest paid jobs. Six of the ten lowest paid occupations are in the restaurant industry, and four of the ten are tipped occupations. The state minimum wage is $7.40, but the tipped minimum wage is even lower at only $2.65. Including tips, tipped workers in Michigan earn a median wage of only $7.75 equivalent to $16,120 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.
60%
TippeD occupATioNs
SERVERS PorTers AND BeLLHops SHAMpooers
3 LowesT pAiD
MiNiMuM wAGe
GeNDer
74%
26%
EDUCATioN
45%
HiGHer eDucATioN
PAreNTAL
STATus
Married 26% Parents 29% Dads 13% Moms 34% Single Moms 16%
MAriTAL &
AGE RACE 28
MeDiAN AGe
45
% of tipped
POVERTY
ES
TAU R ANT
52%
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
20%
INDUSTRY GROWTH
The industry projects employment will continue to grow at the rate of 6% over the next decade.
HINDusTrY proJecTeD sALes 2014 13.5 BiLLioN
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
TippeD
or
Kers
PP
19%
23%
OV
OV
ERTY RAT
ED worKe
ERTY RAT
rs E
TI
TIPPED