By KAVISH HARJAI
Mel Nichols, a 37-year-old bartender in Phoenix, Arizona, takes home anywhere from $30 to $50 an hour with tips included. But the uncertainty of how much she’s going to make on a daily basis is a constant source of stress.
“For every good day, there’s three bad days,” said Nichols, who has been in the service industry since she was a teenager. “You have no security when it comes to knowing how much you’re going to make.”
That uncertainty exists largely because federal labor law allows businesses to pay tipped workers, like food servers, bartenders and bellhops, less than the minimum wage as long as customer tips make up the difference. Voters in Arizona and Massachusetts will decide in November whether it’s good policy to continue to let employers pass some of their labor costs to consumers.
The ballot measures reflect an accelerating debate over the so-called subminimum wage, which advocates say is essential to the sustainability of the service industry and detractors say pushes the cost of labor off employers’ shoulders and leads to the exploitation of workers.
The amount tipped workers make varies by state. Fourteen states pay the federal minimum, or just above $2 an hour for tipped workers and $7 an hour for non-tipped workers.
Arizona employers can pay their tipped workers $3 less hourly than other workers. Under current rates, that means tipped workers’ base pay is $11.35 an hour.
Voters will decide whether to approve a measure backed by state Republicans and the Arizona Restaurant Association to change the minimum for tipped workers to 25% less than the regular minimum wage as long as their pay with tips is $2 above that minimum.
The hourly minimum wage in Arizona is currently $14.35 and increases yearly according to inflation.
Voters in Massachusetts are being asked to eliminate the tiered minimum-wage system.
There, voters will decide on a measure to incrementally increase the state’s tipped worker wage — currently $6.75 per hour — until it meets the regular minimum wage by January 2029. The measure was put forward by One Fair Wage, a not-for-profit that works to end the subminimum wage.
If voters approve the measure, the Bay State would join seven states that currently have a single minimum wage. Michigan will soon join that group after an August state Supreme Court ruling initiated a phase-out of the subminimum wage.
“When you’re not making the money that you should be making to pay your bills, it becomes hard on you,” said James Ford, a longtime Detroit-based hospitality worker. ”(The ruling) makes me think we’re moving forward.”
Source:: The Mercury News – Entertainment
