Tipped workers are 62% women, contributing to the higher rates of poverty among single-female headed households.

Restaurant servers are among the highest paid tipped employees. This means that other tipped workers, such as runners, delivery workers, car wash workers, nail salon workers, and more, likely suffer even higher rates of poverty.

HR 2570, the Working for Adequate Gains for Employment in Services (WAGES) Act would establish a base minimum wage for tipped employees of at least: (1) $3.75h/r beginning 90 days after enactment; (2) $5.00/hr July 1, 2011; and (3) on July 1, 2012, and as necessary thereafter, 70% of the regular minimum wage but no less than $5.50/hr.

This act was introduced May 21, 2009 and has 32 other co-sponsors, including Reps. Lewis and Johnson of Georgia.

The Georgia Minimum Wage Coalition supports legislation in the 2010 General Assembly to cover ALL of Georgia’s workers at the $7.25/ hour level. No worker in Georgia should be left behind the federal minimum wage increase.

Georgia Minimum Wage Coalition501 Pulliam St #344, Atlanta GA 30312www.georgialivingwage.org9to5: 404.222.0037

Hunger Coalition: 404.622.7778

The Need for an Increased Minimum Wage is ClearA minimum wage job in Georgia equals poverty for

many families. Georgia’s current minimum wage of $5.15/hr. keeps hard working families trapped in poverty, rather than providing a means to a decent standard of living. Working 40 hrs/week, 52 wks/year, in a $5.15/hr. minimum wage job produces an annual income of $10,712. For families headed by single parents, these incomes are below the poverty level.

Of these affected workers, • 85 % are 20 years of age and over• 51 % are full-time employees (35 or more hours)• 29 % are married• 25% are parents, with a total of approximately 156,000

children living in these families Many provide more than 50% of their families’

incomes or are the sole providers for their families

The Benefits are HugeThe federal minimum wage increase to $7.25/hr. in July

2009 directly benefited an estimated 119,000 Georgia workers

Other States are Taking ActionThirty-two states and the District of Columbia have

passed state minimum wage rates that are higher than the federal level. Many southern states, including North Carolina, Arkansas, Kentucky, Missouri, Florida and Kansas, have already increased their state’s minimum wages. Ten states have indexed their wage levels to inflation, guaranteeing employees a pay increase when the cost of living increases. Further, several states have also increased their tipped credit, to restore the direct pay of servers to the original level of 50% of the regular minimum wage.

Public Opinion Supports Raising the Minimum Wage In January 2008, a statewide poll found that 89% of

Georgia voters say it is important to ensure that no worker in Georgia is paid below the federal minimum by their employer.

A 2006 University of Georgia poll of registered voters found that 90% of respondents support an increase in the minimum wage. This includes more than 80% of white, male, rural, and Republican respondents.

A 2006 Gallup poll showed that nearly 50% of all small business owners favor increasing the minimum wage

2010 Minimum Wage Legislation in Georgia

Although Congress passed legislation to raise the federal minimum wage to $7.25/hr. by July 2009, action is still needed in Georgia.

HB 290, introduced by Rep. Doug McKillip (D-Athens) will raise the state minimum wage (currently at $5.15/hr.) to the federal rate ($7.25/hr). Georgia Minimum Wage Legislation Will:

Include tipped workers under state minimum wage law. Increase the tip credit, which is currently $2.13/ hour

and was not raised by the recent federal increase, to 50% of the regular minimum wage.

Include pay increases for workers now excluded by both federal and state law, such as home care workers. These workers, who provide basic, non-medical care for the elderly, ill, and disabled, are often minority adult women and can now be legally paid less than the federal minimum wage. Minimum wage laws in several states specifically cover this large and growing workforce.

Index the state minimum wage to inflation. When the cost of living increases, the wages of low-income Georgia workers should increase proportionally.

Federal Tipped Worker LegislationAlthough the federal minimum wage increased in 2009,

the minimum wage for tipped workers has been frozen since 1991. If it had kept pace with its 1991 value, it would be $4.35/hr. today.

Restaurant workers, including servers and bussers, are the largest group of tipped workers. Presently, 15% of servers live below the federal poverty level compared to 5.7% of the rest of the workforce. Even worse is the impact of this sub-par wage on minorities. Currently, 22.3% of African-American

tipped employees and 18% of Latino tipped employees live in families that are below federal poverty level.