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Offbeat What should waiters earn? The debate over the tipped wage

20:46  14 june  2018
20:46  14 june  2018 Source:   online.wsj.com

Minimum wage doesn't cover the rent anywhere in the US

  Minimum wage doesn't cover the rent anywhere in the US Low-income Americans working full-time can't afford to rent a modest apartment in any stateLoad Error

The tipped wage is base wage paid to an employee that receives a substantial portion of their compensation from tips . According to a common labor law provision referred to as a " tip credit", the employee must earn at least the state’s minimum wage when tips and wages are combined or the

Debate over consequences[edit]. There is disagreement among economists, business leaders, and labor activists regarding whether the tipped wage should be higher and In Massachusetts, where the tipped minimum wage is .63, the average income of tipped waiters and waitresses is .88.

Abby Dunn works as many as four shifts a week as a waitress at the Fainting Goat gastropub in Washington,  D.C., to supplement her income from a full-time job at a nonprofit. The 24-year-old is never sure how many nights’ tips it will take to cover her rent and student-loan payments.

“It’s kind of exhausting how unpredictable it can be,” she said.

In D.C., the minimum hourly wage for tipped workers is $3.33 an hour, compared with $12.50 for nontipped minimum-wage workers. (The latter rate is currently slated to rise to $15 by 2020.) But the dual scale could soon become history. On Tuesday, district voters will consider an initiative to eliminate the lower tipped wage and enact one minimum wage for all workers at the higher level.

D.C.'s war over restaurant tips will soon go national

  D.C.'s war over restaurant tips will soon go national The district’s voters will decide Initiative 77, which would raise the minimum wage on tipped employees. Why don’t workers support it? In less than a week, voters in Washington, D.C., will settle a national debate over tipping. The district’s upcoming primary election includes a ballot measure called Initiative 77, a policy to gradually raise the minimum wage that tipped workers receive. Two national restaurant groups are turning D.C. into a proxy war over a wide-reaching and politically fraught norm: the tip.

Debate over consequences [ edit ]. There is disagreement among economists, business leaders, and labor activists regarding whether the tipped wage should be higher and In Massachusetts, where the tipped minimum wage is .63, the average income of tipped waiters and waitresses is .88.

Debate over consequencesEdit. There is disagreement among economists, business leaders, and labor activists regarding whether the tipped wage should be higher and In Massachusetts, where the tipped minimum wage is .63, the average income of tipped waiters and waitresses is .88.

And campaigns to boost the minimum wage for bartenders, wait staff and others who work for tips are gathering steam outside D.C., leading some business owners to worry about rising costs.

Gov. Andrew Cuomo has asked New York state’s department of labor to study a change similar to the one D.C. is weighing. In Michigan, a coalition that includes advocacy group Restaurant Opportunities Centers United, recently submitted thousands of signatures in an effort to put a one-minimum-wage initiative on the ballot in November.

Seven states, including Washington and California, have a single minimum wage. In the other 43, tipped workers are paid less on an hourly basis, though their tips are expected to make up the difference.

Not everybody working for tips favors higher base pay. Bianca Brancella, 26, said she struggles to make her rent and car payments as a $5-an-hour Pizza Hut waitress in Rockland, Maine, but she is against a higher minimum wage.

A minimum-wage worker can’t afford a 2-bedroom apartment anywhere in the U.S.

  A minimum-wage worker can’t afford a 2-bedroom apartment anywhere in the U.S. Nationally, one would have to earn $17.90 an hour to afford a modest one-bedroom apartment without spending more than 30 percent of income on housing, a common budgeting standard. Or $22.10 an hour for a two-bedroom rental. That's based on the common budgeting standard of spending a maximum of 30 percent of  income on housing.The report estimates that renters nationally make an average of $16.88 an hour. That means even those making above minimum wage struggle to afford rent.Housing costs have continued to rise with growing demand for rental housing in the decade since the Great Recession.

So either the workers surveyed were in the 90th percentile of waiters and waitresses, or (more likely) we're getting a better picture of what they really earn . In the meantime, the fairness of tipped workers' wages remains as hotly debated as how much to tip .

Most waiters and bartenders in Alaska, Montana and Nevada earn more than per hour, not including tips . With the debate on wages continuing in Congress and in the public arena, here are some of the major pros and cons of raising the minimum wage .

“Forget it,” she said. “There would be no tips.”

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In November 2016, Maine voters approved boosting the tipped minimum wage in a move that eventually would have given workers $12 an hour. About six months later, state legislators rolled back the initiative as complaints poured in from companies worried about ballooning labor costs and from some tipped workers who said customers didn’t leave as much gratuity after the vote.

“You’re looking at almost a doubling of your wages for most of your employees,” said Joe Kefauver, who advises restaurants on public-policy issues as a managing partner of Align Public Strategies LLC. “That’s why they’re freaking out.”

As Seattle increased its minimum wage to $13 in 2016 from $9.32 in 2014, hours in low-wage jobs fell by about 9% as employers cut back on shifts for existing workers and decided not to hire new ones, according to a University of Washington paper released last year. Overall, low-wage employees’ earnings fell by an average of $125 a month, the paper said.

Browns want players to earn their helmet stripes

  Browns want players to earn their helmet stripes In a move reminiscent of college football’s helmet stickers, the Cleveland Browns are enacting a protocol for “earning” the stripes on their helmets. According to the team’s website, head coach Hue Jackson intends on withholding the stripes atop players orange helmets until they’ve made the 53-man roster.

There is a lot of debate about this right now in the hospitality industry, with some arguing that servers should not be tipped , and should be paid a normal wage , but that gets tied into this Country's low Originally Answered: Why do waiters /drivers expect tip in America even though they earn good salary?

debate over the tipped -minimum, a wage whose mere existence many Americans aren't even That should serve as a strong reminder: The greater the difference between the tipped minimum As New York City waiters , who already earn about 15 cents more than the .30 living wage in the five

Companies typically deal with minimum-wage increases by cutting back on labor, boosting prices and trying to automate, said Ekaterina Jardim, a postdoctoral research associate at the university and an author of the paper.

“Some restaurants will be able to survive. Some won’t,” she said.

Roger Hewitt, owner of Red Hawk Bar and Grill in Ann Arbor, Michigan, is worried about the possibility of a single higher minimum wage. “It could well put me out of business,” he said.

Mr. Hewitt is considering raising menu prices if Michigan brings in a unified minimum wage—possibly by 20%—but he doesn’t want to put off guests of his casual restaurant. “There’s a limit to how much people will pay for sandwiches and burgers,” he said.

At Service Bar in D.C., which dishes up cocktails and comfort food like fried chicken, staffers come in hours before opening time to refill syrup bottles, carbonate beverages and cut up garnishes. “We can’t have 7.5 hours of setup on our clocks paying $15 an hour,” said owner Chad Spangler.

If the D.C. initiative passes, Service Bar might trim costs by sending some servers home early and making guests order at the bar in lieu of table service, Mr. Spangler said.

Here's how much you must earn to put a kid through college

  Here's how much you must earn to put a kid through college Do you make enough money to put your child through college? GoBankingRates determined how much household income it takes to avoid student loan debt.Load Error

But over the past few years, there has been hot debate on whether or not the tipping system should be eliminated completely. Some tipped employees reportedly discriminate against customers and are paid below the minimum wage . Employees may also tolerate harassment in an effort to earn more

Servers need to earn at least minimum wage because that is the law. Servers should make a steady income and be tipped for excellent service not just for pity because they don't make enough money. No, I believe the tipping system promotes a fair wage for waiters /waitresses.

Some restaurants facing higher labor costs might cut down on wait staff by installing electronic menus at tables for ordering, said Michael Lynn, a professor of food and beverage management at Cornell University. Still, the workers “who keep their jobs will make out like bandits,” he said.

Mr. Lynn’s research finds that tipping isn’t substantially different in states where there is one minimum wage. Add higher hourly pay, plus the fact that many guests will be tipping on bigger checks thanks to menu price increases, and workers potentially have a lot to gain, he said.

Boston bartender James Lamont returned to Massachusetts last year after several months in California. He found that it takes 40 hours a week on the East Coast to make the same money as he did in 33 hours a week on the West Coast.

California has a single minimum wage of $11 for tipped and nontipped workers at companies with 26 or more employees. A bill before the Massachusetts legislature would increase the tipped minimum wage, currently $3.75 an hour, to $15.75 by 2025.

“I’d much rather have my employer be responsible for paying me a living wage instead of essentially scrounging for handouts from the guests in the restaurant,” Mr. Lamont said.

There now are more job openings in the US than unemployed workers to fill them .
WASHINGTON -- The labor market has hit a tipping point that should help boost wages: There are more job openings in the U.S. than unemployed workers to fill them. It's the first time that's happened since the government began tracking job openings in 2000.There were a record 6.7 million job openings in April, the Labor Department reported Tuesday. That was an increase from an upwardly revised 6.63 million in March.The revised data show that job openings outstripped total unemployed workers in March for the first time, and the trend continued in April.There were 6.59 million unemployed workers in March and even fewer, 6.

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