It looks like the face of tipped wages in the United States is going to be changing rather drastically in 2021. Multiple states are considering legislation this year that would require employers to pay full minimum wages to people who earn tips in addition to their wages. This move would be a major shift in the disparity in wage earnings between employees who receive tips and those who do not.
At this point in time, only seven states have already implemented full minimum wage laws for those who receive tips. Those states are California, Oregon, Washington, Nevada, Montana, Minnesota, and Alaska. Other states, such as Massachusetts, Connecticut, and New Jersey, are still considering legislation that would ensure full minimum wage is paid to employees who receive tips for their work.
The goal of this legislation is to ensure that employees receive fair compensation for their labor, regardless of the form it takes. This would eliminate the disparity between what those who work primarily for tips, such as restaurant servers, make versus those who don’t receive tips, such as line cooks. If enacted, this law would help close the gap in wage earnings in order to ensure the employees’ wages keep up with the cost of living.
This would not only be a boon for those who work for tips but would also benefit the employers themselves in the long run. It would help to bolster employee morale, which, in turn, would make employees more likely to stay with their employers, thereby reducing employee turnover.
It remains to be seen whether or not this legislation will pass in the many states considering it. However, it is clear that the push for fair wages is strong and growing, and this proposed change could become a reality in many states.
