Thousands Left Out of Minimum Wage Increase

Thousands of low wage workers are left out of the new federal minimum wage increase. Workers who make tips made $2.13 an hour prior to July 24 and still only make $2.13 an hour after that date. What follows is a description of one actual worker.

This is a 24 year old single mother of two girls, working as a waitress in a local restaurant. She makes $2.13 and hour plus tips. She works five or six days a week, not quite 40 hours a week. An old $500 car is her only means of transportation and it costs almost $10 in gas each day to go to and from work. Not able to afford the rent of a two bedroom apartment, they live with their retired Papa. She is trying to save up for a small mobile home, but with gas, insurance, and consumables such as diapers, this is a long, slow process. She needs dental work, but can't afford it, so lives with toothaches. Health insurance is not offered to waitresses, she owes the local clinic for past visits.

Restaurant customers are "supposed" to leave a 15% tip, but this rarely happens. At the end of her shift she is required to log a minimum of 10% of all her sales as tips in the restaurant's computer. It doesn't make any difference whether or not she made this much or not, that is the rule. On the odd day she makes more than a 10% tip the actual amount is posted. She is also required to give up 3% of her total sales as tip sharing with the bus boys and hostess (who actually does make minimum wage). This percentage requirement is designed to accomplish two things. First, it keeps the reported worker wages up to the minimum wage requirement, and it also keeps the restaurant from having to answer IRS questions about actual tips received.