Statement on Tipped Wages Study
The National Restaurant Association released the following statement in response to the Economic Policy Institute's study on tipped wages:
The National Restaurant Association released the following statement in response to the Economic Policy Institute’s study on tipped wages:
“The practice of tipping is fundamentally engrained in our American culture and that spirit of hospitality is what makes the restaurant industry an industry of choice for millions of Americans.
“To say there is a ‘subminimum wage’ is categorically untrue. Tips are wages, that employers and employees pay taxes on. No one is making $2.13 an hour. Every tipped worker is guaranteed at least the minimum wage of their state, more than half of which have increased both the tipped wage and minimum wage to above federal levels.
“Servers are often the highest paid workers in restaurants. Our data shows median hourly earnings range from $16 for entry-level servers to $22 for more experienced servers. If an employee’s tips plus their cash wages don’t add up to the federal minimum wage, their employer is responsible for making them whole under the law.
“Ninety percent of restaurants are independent or franchisee owned and operate on razor thin profit margins. Drastic increases to the minimum wage will only hurt restaurants ability to continue to create jobs and provide real opportunity to young people looking to step into the workforce and those who are finding their economic footing.
“Instead of devaluing restaurant jobs and attacking small businesses, let’s focus on the facts. The facts show the restaurant industry provides opportunity to men and women of all backgrounds and skill levels. More women and minorities own, operate and manage restaurants than virtually any other industry.”
Scott DeFife, Executive Vice President of Policy and Government Affairs, National Restaurant Association
Founded in 1919, the National Restaurant Association is the leading business association for the restaurant industry, which comprises 990,000 restaurant and foodservice outlets and a workforce of more than 13.5 million employees. We represent the industry in Washington, D.C., and advocate on its behalf. We operate the industry's largest trade show (NRA Show May 16-19, 2015, in Chicago); leading food safety training and certification program (ServSafe); unique career-building high school program (the NRAEF's ProStart); as well as the Kids LiveWell program promoting healthful kids' menu options.
“The practice of tipping is fundamentally engrained in our American culture and that spirit of hospitality is what makes the restaurant industry an industry of choice for millions of Americans.
“To say there is a ‘subminimum wage’ is categorically untrue. Tips are wages, that employers and employees pay taxes on. No one is making $2.13 an hour. Every tipped worker is guaranteed at least the minimum wage of their state, more than half of which have increased both the tipped wage and minimum wage to above federal levels.
“Servers are often the highest paid workers in restaurants. Our data shows median hourly earnings range from $16 for entry-level servers to $22 for more experienced servers. If an employee’s tips plus their cash wages don’t add up to the federal minimum wage, their employer is responsible for making them whole under the law.
“Ninety percent of restaurants are independent or franchisee owned and operate on razor thin profit margins. Drastic increases to the minimum wage will only hurt restaurants ability to continue to create jobs and provide real opportunity to young people looking to step into the workforce and those who are finding their economic footing.
“Instead of devaluing restaurant jobs and attacking small businesses, let’s focus on the facts. The facts show the restaurant industry provides opportunity to men and women of all backgrounds and skill levels. More women and minorities own, operate and manage restaurants than virtually any other industry.”
Scott DeFife, Executive Vice President of Policy and Government Affairs, National Restaurant Association
Founded in 1919, the National Restaurant Association is the leading business association for the restaurant industry, which comprises 990,000 restaurant and foodservice outlets and a workforce of more than 13.5 million employees. We represent the industry in Washington, D.C., and advocate on its behalf. We operate the industry's largest trade show (NRA Show May 16-19, 2015, in Chicago); leading food safety training and certification program (ServSafe); unique career-building high school program (the NRAEF's ProStart); as well as the Kids LiveWell program promoting healthful kids' menu options.
