Restaurant Opportunities Centers United

www.rocunited.org

BUSSERS, RUNNERS, AND BARTENDER ASSISTANTS

The state minimum wage is $7.50, but the tipped minimum wage is only $2.13. The federal tipped minimum wage has stood at $2.13 for the last 23 years. In 1991 it was pegged at 50% of the federal minimum wage. In 1996 it was officially depegged from the minimum wage and has remained frozen ever since. Including tips, tipped workers in New Mexico earn a median wage of only $7.00 — equivalent to $14,560 for a full-time year-round employee. However, tipped workers generally are allowed part-time schedules that vary by season. Seven states have eliminated the tipped minimum wage — in those states tipped workers receive the full minimum wage.

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, 30% are moms, and although many are married, half of these are single moms. Although the median age for tipped workers is 29, 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 New Mexico there are nearly 29,000 tipped workers, and over 68% 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. Unfortunately, the restaurant industry offers several of New Mexico’s lowest paid jobs. Five of the ten lowest paid occupations are in the restaurant industry, and one of these is a tipped occupation.

TIPPED MINIMUM WAGE

$2.13MINIMUM WAGE

$7.50MEDIAN WAGE FOR TIPPED WORKERSINCLUDING TIPS

$7.00

GENDER

69% 31%

TIPPED WORKERS WHOWORK IN RESTAURANTS

68%LOWEST PAIDTIPPED OCCUPATION

N E W M E X I C O

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 42%Latino 40%Other 9% Asian 7%Black 3%

<_24 44% 25-34 18% 35-44 15% 45+ 24%

RACEAGEHIGHER EDUCATION

EDUCATION

PARENTS WITH CHILDRENON FREE LUNCHES

49%

MARITAL &PARENTAL

STATUS

49%Married 23%Parents 26%

Dads 17%Moms 30%

Single Moms 15%

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 11% over the next decade.HINDUSTRY PROJECTED SALES 2014 ➤ 3.2 BILLION

BIL

LIO

N

IND

US

TRY

GR

OW

TH

9%

POVERTY RATE

POVERTY RATE

TIPPED RESTAURANT W

ORK E

RS

T IPPED WORKERS

27%

23%

WORKERS ON FOOD STAMPS

2X REST OF NM WORKFORCE

21%

29MEDIAN 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 New Mexico

workforce.