7/27/2019 State of Tipped Workers - TEXAS
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COUNTER ATTENDANTS
BUSSERS, RUNNERS, &BARTENDER ASSISTANTS
SHAMPOOERS
Texas follows federal minimum wageguidelines. The federal minimum wage is
$7.25, but the tipped minimum wage is evenlower. It has stood at $2.13 for the last 23years, since 1991 when it was pegged at 50%
of the minimum wage. In 1996 it was officially
depegged from the minimum wage and has
remained frozen ever since. Including tips, tipped
workers in Texas earn a median wage of only$8.00 – equivalent to $16,640 for a full-timeyear-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 thedemographic groups that are growing the
most rapidly, historically with lower voterparticipation rates, but whose growing civicengagement has been crucial in tipping thescales in recent elections. Tipped workersare primarily women, over 40% are moms,and although many are married, half of these
are single moms. Although the median age fortipped workers is 29, half of them are younger.And they are racially diverse, overrepresentedby Latinos, Asians, and African Americanscompared 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
T E X A S
THE STATE
OF TIPPEDWORKERS
In Texas there are over 420,000 tipped
workers, and 65% of these work in therestaurant industry. The restaurant industryemploys nearly 10% of the workforce and is one of the fastest growing sectors ofthe economy. Unfortunately, the restaurantindustry offers several of Texas’s lowest paid
jobs. Five of the ten lowest paid occupationsare in the restaurant industry, and threeof the ten are tipped occupations.
3 LOWEST PAIDTIPPED OCCUPATIONS
TIPPED
MINIMUM WAGE
$2.13MINIMUM WAGE
$7.25MEDIAN WAGE FORTIPPED WORKERSINCLUDING TIPS
$8.00
GENDER
64% 3 6 %
TIPPED WORKERS WHOWORK IN RESTAURANTS
65%
Restaurant Opportunities Centers United
www.rocunited.org
7/27/2019 State of Tipped Workers - TEXAS
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In states with a tipped minimum wage of $2.13,the poverty rates for workers of color is nearlydouble that of the seven states without a tippedminimum 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
Latino 40%
White 39%Black 12%
Asian 9%
Other 1%
<_24 37% 25-34 25% 35-44 17% 45+ 21%
RACEAGEHIGHER EDUCATION
EDUCATION
PARENTS WITH CHILDREN
ON FREE LUNCHES
40%
MARITAL &
PARENTALSTATUS
46%
Married 32%Parents 34%
Dads 18%Moms 43%
Single Moms 20%
P
O V E R T
Y
TIPPED RESTAURANT WORKERS
live in POVERTY at 2.4X the rateof the U.S. workforce.
RAISE THE MINIMUM WAGELiving off tips is precarious, but it doesn’t haveto be this way. Raising the minimum wage andeliminating the tipped credit would providea significant stimulus to the U.S. economy intipped 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 ➤ 42.3 BILLION
B
I L L I O N
I N D U S T R Y
G R O W T H
50%
P O V E R
TY R A T E
P O V E R
TY R A T E
T I P P
E D R E S T A UR A N
T W O R
K E
R S
T I P
P E D W O R K E R
S
23%
19%
WORKERS ONFOOD STAMPS
1.5X REST OF U.S.WORKFORCE
17%
29MEDIAN AGE
of tippedworker moms
are single moms
MINIMIM
WAGE$10.10
$12.00
$15.00
TIPPEDSTIMULUS
$12.7
$19.4
$30.1
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