ABOUT
THE PROBLEM
Restaurant workers are paid less because of one key thing, the Tipped Minimum Wage.
HISTORY.
It's Origins
Initial Backlash
How it became popularized
Tipping originated in medieval times as a master to serf custom. Wishing to seem aristocratic, wealthy Americans brought it to the US in the 1850's and 60's and started tipping restaurant workers and others in the service industry (TIME).
Initially, most of the population was opposed to tipping, as people deemed it inherently condescending and classist, leading to the anti-tipping rhetoric that even spread to Europe (TIME).
Restaurant owners found it profitable to pay their workers less, citing tipping as how they would make a living wage, thus making it significantly more popular (TIME).
WHAT IT LOOKS LIKE NOW.
The Tipped Minimum Wage
The federal minimum wage is $7.25 with a tipped minimum wage of $2.13, both of which are not enough for a decent living (U.S. DOL). If the minimum wage rose with productivity, it would be over $20 today (EPI - Zipperer). This system continually leaves people to struggle in poverty, and needs to be changed.
Pay Discrimination
"If the majority of your income comes from the customers... why is the restaurant owner your boss?" - Liz Phillips
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When most of your income comes from tips, that exposes you to your customer's prejudices, leading to lower pay for minorities (Washington Post).
Poverty
Restaurant workers make significantly less than workers outside the industry. This coupled with having little to no benefits exposes them to higher levels of poverty (EPI - Shierholz).
