Change the word TIP to BONUS
U.S. service sector employees who receive tips have been excluded from the latest hike in the federal minimum wage that kicked in on Friday, leaving the public to cover the cost of their healthcare, according to economists and advocates.
The federal minimum wage on Friday rose to $7.25 from $6.55. But only seven states guarantee tipped workers the minimum wage, according to a report by the National Employment Law Project, a New York-based advocacy group for low-income workers.
The minimum wage for so-called "tipped" workers has been frozen at $2.13 an hour since 1991, the report found.
Waitresses and waiters, who comprise the majority of tip-receiving workers, have nearly three times the poverty rate of the nation's workforce, it said. - Reuters