Restaurant Opportunities Centers United

www.rocunited.org

The federal minimum wage is $7.25, but the federal tipped minimum wage is only $2.13. Nevada, with one of the nation’s most vibrant restaurant industries, pays tipped and non-tipped workers alike $8.25. Including tips, tipped workers earn a median wage of $10.50 — equivalent to $21,840 for a full-time year-round employee. However, tipped workers generally are allowed part-time schedules that vary by season, and tips fluctuate by season and shift, leaving many restaurant workers in a precarious situation.

The Rising American Electorate refers to the demographic groups that are growing the most rapidly, historically with lower voter participation rates, but whose growing civic engagement has been crucial in tipping the scales in recent elections. Tipped workers are primarily women, over 40% are moms, and although many are married, half of these are single moms. Although the median age for tipped workers is 40, half of them are younger. And they are racially diverse, overrepresented by Latinos, Asians, and African Americans compared to the broader workforce. They are also a highly educated group. Tipped workers are a snapshot of the RAE.

TIPPED WORKERS AND THE RISING AMERICAN ELECTORATE

THE STATE OF TIPPED WORKERS

In Nevada there are over 108,000 tipped workers, and 53% of these work in the restaurant industry. The restaurant industry employs nearly 10% of the workforce and is one of the fastest growing sectors of the US economy. Although Nevada has made great strides in reducing poverty among hospitality workers, and only one of the ten lowest paid occupations is in the restaurant industry, servers remain the thirteenth lowest paid occupation in the state.

TIPPED MINIMUM WAGE

$8.25 MINIMUM WAGE

$8.25MEDIAN WAGE FOR TIPPED WORKERSINCLUDING TIPS

$10.50

GENDER

48% 52%

TIPPED WORKERS WHO WORK IN RESTAURANTS

53%

N E VA D A

In states with a tipped minimum wage of $2.13, the poverty rates for workers of color is nearly double that of the seven states without a tipped minimum wage, with one in four living in poverty. WHITE PEOPLE OF COLOR ALL

POVERTY RATES IN $2.13 STATES 16% 25% 20%

POVERTY RATES IN STATES WITH NO TIP CREDIT 13% 14% 14%

TIPPED WORKERS AND THE RISING AMERICAN ELECTORATE

White 49%Latino 22%Asian 17%Black 6% Other 5%

<_24 12% 25-34 26% 35-44 24% 45+ 39%

RACEAGEHIGHER EDUCATION

EDUCATION

PARENTS WITH CHILDRENON FREE LUNCHES

46%

MARITAL &PARENTAL

STATUS

51%Married 41%Parents 36%

Dads 30%Moms 42%

Single Moms 21%

POVE

RTY

RAISE THE MINIMUM WAGELiving off tips is precarious, but it doesn’t have to be this way. Raising the minimum wage and eliminating the tipped credit would provide a significant stimulus to the U.S. economy in tipped wages alone, providing a boost to local economies and the broader food industry, as well.

FOR MORE INFO rocunited.org/stateoftippedworkers/

The industry projects employment will continue to grow at the rate of 15% over the next decade.HINDUSTRY PROJECTED SALES 2014 ➤ 6 BILLION

BIL

LIO

N

IND

US

TRY

GR

OW

TH

35%

POVERTY RATE

POVERTY RATE

TIPPED RESTAURANT W

ORK E

RS

T IPPED WORKERS

12%

10%

WORKERS ON FOOD STAMPS

SAME AS REST OF NV WORKFORCE

10%

40MEDIAN AGE

of tipped worker moms

are single moms

MINIMIM WAGE$10.10$12.00$15.00

TIPPED STIMULUS$12.7$19.4$30.1

Tipped restaurant workers live in poverty at 2x the rate of the Nevada workforce.