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Essay tipping in restaurants
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"It is but equity...that they who feed, clothe and lodge the whole body of the people, should have such a share of the produce of their own labor as to be themselves tolerably well fed, clothed and lodged." -- Adam Smith, The Wealth of Nations, 1776 The restaurant server is one of the most popular jobs in the country and according to the National Restaurant Association, currently, 1 in 12 Americans work in the restaurant industry and about 50 percent of all adults have worked in the industry at some point during their lives. The industry is clearly very large with over 13 billion workers, but overall, workers in the industry do not get paid very well. According to the U.S. Department of Labor (DOL), the average annual salary for a server is just over $20,000. In fact, servers are twice as likely to use food stamps as the rest of the U.S. workforce and three times as likely to be living in poverty. The main reason for this is the existence of the tipped minimum wage, which since 1991 has stayed set at $2.13 per hour. Not many people even realize that the tipped minimum wage exists, but according to the DOL, servers in 43 states get paid less than the regular minimum wage hourly based on the assumption that the rest of their wages will come from customer tips. In fact, 22 states pay their tipped workers less than $3 per hour. Although tips can often lead to servers making well over regular minimum wage per hour, overall, tips are very inconsistent and are completely dependent on restaurant customers. Not only does the customer decide how much to tip based on his/her enjoyment of the dining experience, but also servers need busy restaurants in order to make good money. There is an ebb and flow to the restaurant busin... ... middle of paper ... ...y-income-fine-dining-servers-20195.html>. Myotte, Maria. “Op-Ed: Restaurant Servers Can’t Live on $2.13 an Hour.” Yahoo! News. Yahoo!, 11 Dec. 2013. Web. 30 Oct. 2014. . National Restaurant Association. 2013 Restaurant Industry Pocket Factbook. Rep. National Restaurant Association, 2013. Web. 30 Oct. 2014. . Nayak, Rajesh, and Paul Sonn. Restoring the Minimum Wage for America’s Tipped Workers. Rep. National Employment Law Project, 2009. Web. 30 Oct. 2014. . U.S. Department of Labor. Minimum Wages for Tipped Employees. Rep. U.S. Department of Labor Wage and Hour Division, Dec. 2011. Web. 30 Oct. 2014. .
The Web. The Web. 16 Feb. 2014. " U.S. Department of Labor - Wage and Hour Division (WHD) - Minimum Wage."
An employer who pays his employees the bare minimum will not see the same appreciation and respect as an employer who pays his employees livable wages. Lew Prince points out the various benefits that have come with paying his workers above the federal minimum since his business began. He states, “We’ve outlasted 20-store local chain and numerous regional and national chains. Most of these companies paid their employees minimum wage or barely above. My creative, dedicated, and better-paid employees won this life-or-death struggle for us” (Prince). Their loyalty also benefits Prince in the fact that he has to pay very little for employee turnover and constant training costs that other businesses struggle with. What Prince and many other business owners alike gain from higher wages reflects only a portion of the nation that will prosper from this monumental economical
National Conference of State Legislators (NCSL). "State Minimum Wages." State Minimum Wage Chart. N.p., n.d. Web. 24 Oct. 2013.
Fast-food workers have been protesting for a minimum wage of $15 dollars an hour and the freedom to unionize. The workers have organized numerous protests this year. During the protests they have walked out and chanted slogans regarding their pay. The main fast-food companies that are effected is McDonald's and Burger King. They both have stated that they will not press charges and indeed are allowing the workers to return. These workers that are participating in the strike doesn’t represent the majority of the fast-food employees. The people participating in the strike are not only youths but adults and elders as well. Due to the countries low employment rate many of these workers are supporting a family or other dependents. This is where most of the fast-food workers are getting their motivation to protest this industry. Unfortunately, many Americans are questioning the negative economic effects of their proposed wage and their lack of worthiness to receive that big of a pay raise. However, I believe that with some adjustment and research we can find a way to make everyone happy. My solution advises that we support Obama’s nine dollars an hour minimum wage proposal. It will give the fast-food workers financial support, release the burden of the taxpayer’s assistance, and keep inflation balanced.
Washington has the nation’s highest minimum wage at $9.19 per hour. Seattle is set to raise the minimum wage even further, to $15 per hour. More than fifteen millions people work for a minimum wage, which lead to about fifteen thousand dollars a year. These workers would earn a lilt bit below the poverty line for a family of two (Blankinship). Seattle Mayor Ed Murray is pushing this effort since December of last year. Some council members, like Kshama Sawant of the Socialist Party, also support this measure. The federal minimum wage is currently set at $7.25 an hour, with President Obama’s plans to push it to $10.10 an hour (Weissman). Faster workers went on strike in many cities to demand better pay and right to unionize. $15 an hour is part of their demand when they protested in August of 2013 across fifty cities. In this current economy, people ages 25 to 54 are the largest group to hold fast food jobs. Since these jobs pay so little, these workers qualified and used $243 billion in public benefit per year (Covert). Although this is a popular policy, economists and journalists are conflicted in their analysis of the effect of increasing the minimum wage. Some economists found the minimum wage hikes lead to small j...
Idaho’s workers are paid the current national minimum wage of $7.25 an hour or less.
One of the most common reasons for tipping is out of guilt more than gratitude. According to tipping guidelines you should leave atleast 15 percent of the bill as a tip at a restaurant. However, many times people leave more than the acceptable minimum when they know that the servers use this money to make ends meet. Working all day at the office making very little money yourself will leave yo...
Congress created minimum wage with the Fair Labor Standards Act of 1938. The first minimum wage was only 25 centers per hour. Through history the minimum wage has increased a little at a time, umping a couple cents each time. The last time the United States changed the minimum wage was in 2007 which was a large jump from $5.15 per hour to $7.25 per hour. This jump of $2.10 was a large increase. Through the years it is evident that the minimum wage is constantly changing. “. It has averaged $6.60 an hour in purchasing power in 2013 dollars. But it has ranged from a low of $3.09 an hour in late 1948 to a high of $8.67 an hour in 1968(Sherk, J. (2013, June 25).
Tipping gives employers the imaginary sense that their restaurant is good. It only attempts to regulate the server quality. If servers are
The current U.S. federal minimum wage for untipped workers is currently $7.25 an hour, as it has been since 2009. At this rate, a full time employee would earn an annual salary of $15,080, meaning that a family of two people, for example a single working mother with one child, working a full time minimum wage job, would sit below the federal poverty line of $15,730 for two people (2014 Poverty Guidelines). While it is true that there are tax breaks such as those for children, and the Earned Income Tax that exist to help such people living in poverty, the fact exists that the wages in the US have not kept up with inflation and the cost of living. While the value of the federal minimum wage has risen 21% since 1990, the cost of living itself has risen 67% (Gilson). Opponents are quick to argue that only unskilled workers are paid minimum wag...
Dorn, James A., and David Cooper. “Should the Federal Minimum Wage Be Raised?” U.S. News Digital Weekly 5.18 (2013): 14–14. Print.
Since its inception, the minimum wage has been a hotbed for debate. If today’s leaders could manage to increase minimum wage, millions of families would benefit.
"Raising the minimum wage will benefit about 28 million workers across the country. And it will help businesses, too - raising the wage will put more money in people's pockets, which they will pump back into the economy by spending it on goods and services in their communities." -- President Obama
Editorial. Nations Restaurant News 11 Nov. 2005: n. pag. MasterFILE Premier. Web. 5 Mar. 2013.
“Of course, nothing helps families make ends meet like higher wages. … And to everyone in this Congress who still refuses to raise the minimum wage, I say this: If you truly believe you could work full-time and support a family on less than $15,000 a year, go try it. If not, vote to give millions of the hardest-working people in America a raise.”