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“Time to Pay Up: States Boost Minimum Wages for Tip Earners

With the new year fast approaching, many states are considering a law that would require full minimum wages for all tipped employees. Although many tipped employees in other countries, such as the United Kingdom, have already received their full minimum wages since 2009, more and more US states are following suit by either introducing or considering a law that will ensure minimum wages are met for this particular sector of the workforce. It’s no secret that working in hospitality, or in any other job with an aspect of tips involved, can result in a considerable decrease in wages over the course of a year. The logic behind this decision is that by guaranteeing minimum wages for all tipped employees, regardless of how big their tips are, it will make sure that no employees are being shortchanged. Currently, the majority of states in the US only award the tipped wage for their employees, meaning that the rest of their salary must be supplemented by a combination of tips and wages. However, with at least 12 states still considering passing full minimum wage laws for tipped employees in 2021, it is clear that something must change. Such a law will create a more equal playing field between employees who receive tips and those who don’t. Additionally, not only will it mean that all tipped employees will be guaranteed minimum wages, but it will provide an incentive for them to continue to provide outstanding customer service, knowing that they will be financially secure in their jobs regardless of how much tips they receive at the end of each shift. The decision to require full minimum wages for tipped employees is a welcome one, and is likely to provide the financial security that many people in the hospitality and service sector depend on. Hopefully, more states will consider introducing such a law in 2021, allowing all employees, regardless of tipped and untipped, to receive the wages they deserve.