The federal minimum cash wage for tipped workers has been frozen at $2.13 per hour for 28 years. And because women represent more than two-thirds of tipped workers nationwide, they, and the families who depend on them, pay the price when the tipped minimum wage falls short. Nationwide, the poverty rate for women tipped workers is more than 2.5 times the rate for workers overall, and women’s concentration in tipped occupations and other low-wage jobs is an important factor contributing to persistent gender wage gaps. A number of states, however, have set minimum cash wages for tipped workers above the federal level, and seven states require employers to pay tipped employees the regular minimum wage regardless of tips. Compared with states that have a $2.13 hourly tipped minimum cash wage, women in these “One Fair Wage” states—where tipped workers must be paid the regular minimum wage before tips—face a smaller gender wage gap and a lower poverty rate.
Download Women in Tipped Occupations, State by State to view the tipped minimum cash wage, the wage gap, the share of tipped workers who are women and women of color, and poverty rates for women in tipped jobs in your state.