WHAT CAN

BE DONE

This problem has existed for ages, and has some simple, but hard, solutions.

GOVERNMENT PROGRAMS

Increased Minimum Wage

Increasing the minimum wage is proven to have positive effects on the economy, with little affect on the prices of goods. Critics of this approach propose that it will decrease employment and raise prices, but other economists have observed otherwise. With an increase in the minimum wage, the people earning it have more money to put back into the economy, leading to growth in the market (The Conversation).

Studies have shown that a single adult without children would need to be making at least $15 per hour to achieve an adequate standard of living. Two adults with two children making $15 per hour would still not be able to afford basic necessities. Yet while all of this is known, the minimum wage has not increased (when adjusted for inflation) since 1968 (EPI - Zipperer).

Unifying the Minimum Wage

As we have it now, the minimum wage is split into two tiers, one for those in tipped occupations and another for those who are not. This system allows for tipped workers to be paid as little as $2.13 per hour (Washington Post). Some states, like California, do not have separate tipped and "normal" minimum wages, but many states still do, and many of their tipped workers are left near poverty (U.S. DOL).

BUSINESS

PRACTICES

Pool Tipping

Some businesses have implemented a new form of allocating tips, where instead of each worker gathering their own tips, they are all given some from a pool of tips earned by them and their coworkers. This system allows for workers in the kitchen and waiting tables to earn more from tips, and gives each individual a more stable stream of income. Ms. Barton, a restaurant owner, stated in interview that "it's a great thing for everyone, to work not only in that team environment but to share in tipping."

Living Wage fees

Businesses have also implemented a "Living wage fee," or a fee that allows companies to increase their worker's wages, separate or in addition to a tip (Ms. Barton). In the bay area especially, this system is very popular, as many minimum wage workers need to be able to pay the high rent that comes with the areas where they work. This fee can also be used to pay for workers' benefits, from healthcare to sick leave, these fees allow employers to provide their workers with higher qualities of life. Now if you see this fee next time you eat out, you can know that your money is going to a good cause.

Worker Cooperatives

Called "the next phase in humanity's progress and self improvement," worker cooperatives present a unique opportunity for restaurants to organize in a democratic way (Liz Philips - Democracy at Work).

Worker cooperatives are organized in such a way that every employee has a voice, bringing democracy into the workplace. These businesses are often more suited to responding to problems like the COVID-19 pandemic, and can have greatly reduced pay inequality than more traditional business models (Liz Phillips). The majority of worker cooperatives have maintained a 2 - 1 pay ratio from the highest paid employee to the lowest paid, as compared to 303 - 1 in the average US corporation (NCBA).

A worker cooperative pizza shop in the south bay, A Slice of New York, was able to provide its workers with a much needed paid break during the coronavirus pandemic, instead of laying off its workers (The Six Fifty).

Worker cooperatives allow workers to decide to pay themselves equally, or distribute the pay based on how they value each other's labor, making them a useful way for businesses to organize more equitably (Liz Phillips).

Here is a list of useful sources on how to transition your business to a cooperative!