Research

  • The Case for the Tip Credit: From Workers, Employers, and Research

    February 2021

    The tipping system provides substantial earning opportunities for workers across many industries, especially restaurant servers and bartenders – well beyond the current minimum wage, and even beyond the proposed $15 minimum wage. Saving the tip credit is a worker-organized, bipartisan issue. Thousands of tipped workers across the country have pushed to save the tip credit, against the infringement of outside interests and activists. Yet, interest groups’ attempts [...]
  • Tipped Workers, Minimum Wage Workers, and Poverty: Analyzing the Redistributive Impact of Eliminating Tip Credits

    February 2021

    Key takeaway: According to a new study by economists from the University of California, Irvine, tipped workers are significantly less likely to be poor than are standard minimum wage earners. Tipped workers, many of whom are in the food and beverage service industry, have lower statutory minimum wages than other workers (under federal and most state laws). However, the lower minimum wages for tipped workers are [...]
  • The National Impact of a $15 Minimum Wage: Over 2 Million Jobs Lost

    January 2021

    President Biden and recent legislation have proposed more than doubling the federal minimum wage to $15, and raising the separate federal tipped minimum wage by as much as 600 percent. Rather than providing relief from the pandemic, the best economic evidence shows this proposal would worsen its consequences. This analysis is based on a 2019 methodology developed by the nonpartisan Congressional Budget Office, which estimated a [...]
  • The State Employment Impact of a $15 Minimum Wage: January 2021

    January 2021

    The crisis created by the spread of COVID-19 and subsequent shutdowns has severely affected America’s employees and businesses, and state economies still face a long road to full recovery to pre-pandemic activity levels. As part of his pandemic relief plan, President Biden has proposed raising the federal minimum wage to $15 and eliminating the tip credit—a plan that is estimated to cost over 2 million [...]
  • The State Employment Impact of a $15 Minimum Wage

    October 2020

    The crisis created by the spread of COVID-19 and subsequent shutdowns has severely affected employees and businesses, regardless of industry. The U.S. faced a 14.7 percent unemployment rate at its peak in April 2020, as a direct result of the virus outbreak, and although it has declined to 8.4 percent in the month of August, the nation’s businesses and employees still face a long road [...]
  • Raising the Tipped Wage Reduces Opportunity for Tipped Workers

    November 2019

    Over five million Americans currently work in restaurants as tipped servers or bartenders in restaurants. By one estimate, nearly one in three American workers worked in the restaurant industry as their first job. Despite the industry’s popularity as a place of employment, it has been the subject in recent years of a well-funded attack by a labor group called the Restaurant Opportunities Center (ROC). ROC [...]