![]() ![]() In fact, you are interviewing for your job every time a new customer sits down.” It varies day to day, week to week, month to month, year to year,” says Jayaraman. “When you live off of tips, your rent and your bills don't go up and down, but your income does. Relying mostly on tips for one’s income is not just an issue of income instability, but also that of job insecurity that comes with having a seasonal job. The tax on their combined income – hourly wage plus tips – is considerably more than what they would pay on their hourly pay. Restaurant workers are also required by law to claim their tips as income. And you live off of your tips,” explains Jayaraman. Your wage is so low it goes entirely to taxes and you get a pay stub that says ‘This is not a paycheck’. "When you earn a wage of $2 or $5, you don’t actually earn a wage at all. This tipped-minimum wage policy is basically the restaurant industry asking its customers to pay its workers, says Saru Jayaraman, co-director of Restaurant Opportunities Centers United, also known as ROC-United, and author of Behind the Kitchen Door. Yet many states still pay their food industry workers less than $3 an hour. For example, New York restaurant workers are now paid $5 an hour. ![]() Some states have taken steps to increase the tipped wage slightly. So far, only seven states have passed legislation eliminating this kind of sub-wage, requiring all workers to be paid a statewide minimum wage. ![]() S ince 1996, the federal tipped-minimum wage for food workers like Jones has been $2.13. ![]()
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