Today, the Employment Policies Institute (EPI) took out a full-page ad in Roll Call warning lawmakers on the consequences of eliminating the tip credit, as Sen. Bernie Sanders’ Raise the Wage Act would do. Tipped workers nationwide have actively opposed legislation to change the tipped minimum wage. But economists are skeptical, too. As the ad explains, the best research shows that a higher tipped wage leads to fewer tips, an increase in restaurant closures, and fewer job opportunities for tipped workers.
View the ad here.
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The ad highlights the following findings from economists across the country:
- “...higher mandatory tipped minimum wages...decrease tip income”, U.S. Census Bureau
- “Restaurants...driven out of business”, Harvard Business School
- “...full service restaurants...hire fewer tipped workers...”, Economists from Miami and Trinity Universities
The Common Myths On The Tipped Wage
EPI has launched TippedWage.com to refute common myths on the tipped wage. Earlier this year, EPI released a detailed policy brief in support of the tipped wage. Another project, OurIndustryOurVoice.com, features servers and bartenders from around the country who support the tipping system.
“Servers and bartenders have consistently rejected attempts to end the tip credit, because it could cost them substantial income or their jobs,” said Michael Saltsman, Managing Director of the Employment Policies Institute. “Ending the tip credit will bring more economic harm to an industry already struggling from the pandemic.”