Financial Disparities Between Tipped and Full-Wage Workers Larger Than Ever
A new study shows that the wage gap between tipped and non-tipped workers is the widest it's ever been in American history.
1966 amendments to the Fair Labor Standards Act (FLSA) created protections to hotel, restaurant and other service employees, but also created a sub-wage for tipped workers with the expectation that an employee's tips, when added to the sub-wage, would match or exceed the minimum wage. In effect, the tipped wage created a subsidy for service employers, exempting organizations that used tipped labor from paying full wages.
According to a new study from the Economic Policy Institute (EPI), tipped laborers face much more stringent economic outcomes than their full-wage peers. According to the study, the poverty rate among non-tipped workers is 6.5 percent - but among tipped workers, it rests at at 12.8 percent. More than half of the people represented by this overwhelmingly female demographic are more likely to rely on public assistance as a permanent wage subsidy. The authors of the EPI study note that public assistance was never meant to become "part of the business strategy for low-wage employers." They also found that the tipped laborer workforce is currently the largest it has ever been.
In their own research focused on tipped workers, the Restaurant Opportunities Center (ROC) found that one in three tipped workers are parents, and of that number one in six rely on free and reduced lunch programs to feed their children. Poverty rates dramatically rise to 25% among tipped workers who are people of color. However, overall poverty decreases in states with higher minimum wage rates.
The Department of Labor recognizes tipped employees as those who "customarily and regularly" receive $30 or more per month in tips. According to the PolicyMatters Journal, that breaks down to $1.50 a day in tips each month. Employers are required to pay tipped workers $2.13 per hour. An employer can claim a "tip credit" up to $5.12, the difference between the direct wage they're required to pay and the $7.25 federal minimum wage. According to the Department of Labor, an employer should make up the difference if a worker's tips do not cover the difference.
8/28/2015 Alaska Court Protects Abortion Access for Low-Income Women - The Alaska Superior Court struck down a state law yesterday that would have severely limited abortion access for low-income women in Alaska.
The state's Superior Court also struck down a Department of Health and Social Services regulation that placed narrow specifications on Medicaid coverage for abortions, requiring that Medicaid-funded abortions be determined by a physician to be "medically necessary." Last year, the Center for Reproductive Rights, the American Civil Liberties Union, and Planned Parenthood sued on behalf of the Planned Parenthood of the Great Northwest, claiming that the narrow definition of "medically necessary" arbitrarily established conditions designed to restrict the ability of low-income women to access abortion services.
The law was temporarily blocked last July by an Alaskan state court judge.
Superior Court Judge John Suddock ordered yesterday that the state be blocked from implementing this regulation, ruling that it placed an undue burden on low-income women seeking abortion services in Alaska.
"By providing health care to all poor Alaskans except women who need abortions, the challenged regulation violates the state constitutional guarantee of 'equal rights, opportunities, and protection under the law'," the ruling read.
"We applaud the superior court for striing down these cruel restrictions on women's health and rights that violate the Alaska Constitution," said Chris Charbonneau, CEO of Planned Parenthood of the Great Northwest and the Hawaiian Islands. . . .
8/26/2015 Saudi Women Prepare to Vote for the First Time - The fight for gender equality is making slow but notable progress in Saudi Arabia, where women will be allowed to vote for the first time in upcoming December elections.
This shift in Saudi law came in 2011, when a royal decree announced that women would be allowed to vote and run in local elections beginning in December of 2015. . . .