In 2020, more states are considering enacting laws that will help tip-earners across the nation. In an effort to raise wages for workers who rely on tips for their income, several states are looking to pass legislation that would make the minimum wage equivalent for both tipped and non-tipped workers.
In states across the nation, there is a growing focus on ensuring that all employees, regardless of their job type, receive fair wages. In some states, the law already requires that tipped employees receive a minimum wage of at least $2.13 an hour, but in many states it is lower. This can leave workers, who are highly dependent on tips, struggling to make ends meet.
Advocates argue that while tipped worker can make more money overall than their non-tipped counterparts, this comes at the cost of a greater amount of risk as their income is not guaranteed. With the addition of the extra risk, any increase in wages for tipped employees can be a step in the right direction for many.
As more states consider legislation that could make the minimum wage equivalent for both types of employees, this could be a huge game changer for those employed in restaurant and hotel industry, where most tipped employees are employed.
Increased wages for tipped employees could be good for the economy and could help these workers make ends meet. In the end, raising wages for tipped employees is a move that could encourage economic growth and reduce inequality. And, it is an idea that is gaining traction with more states considering these laws.