“Pay Up! – More States To Require Full Minimum Wage For Tip Earners This Year

As the value of a dollar continues to decrease and the cost of living rises, the necessity for higher wages has become a growing concern for many Americans. Recently, several states have considered legislation that would require employers to pay their employees the full state minimum wage, even for those who receive tips as part of their income. This new law would replace the current federal regulations that allow employers to pay their employees the sub-minimum wage of $2.13 per hour. Nine states have already passed legislation requiring employers to pay their tipped employees the full state minimum wage, including California, Oregon, Washington, Massachusetts, Alaska, Minnesota, Hawaii, Vermont, and Montana. Additionally, other states are also currently considering similar legislation, including New York, Michigan, Nevada, and Colorado. The increases for these tipped employees would range between $1.10 and $3.15, depending on the current minimum wage in each state. Proponents of the legislation argue that the current federal regulations are outdated and are well below the cost of living in most states. Tip earners are also more likely to be women, people of color, and members of the service industry, making them some of the lowest-paid employers in the country. It is also argued that this law would help reduce the gender wage gap for women, as women make up the majority of tipped employees in the United States. On the other hand, opponents of the legislation worry that employers may be forced to reduce their workforce or adjust their hours due to the increase in costs. Additionally, they note that some of the states considering such legislation already have some of the highest minimum wages in the nation, making the increase even more burdensome for employers. Ultimately, the decision on this law will fall to each state’s legislature, but it is clear that the current federal regulations are not adequate for today’s economy. If the proposed legislation passes in more states, it could bring significant financial relief to millions of tipped employees across the nation.