Workers Who Get Tips More Likely To Be Poor

New report shows a connection between poverty and working for tips.


Is working for tips a path to poverty? Sadly, for many hard-working New Yorkers, the answer is yes. 

Tips for workers are unreliable at best and aren't adding up to a living wage for many who work hard bussing tables, cleaning hotel rooms, parking cars and performing other service industry jobs. 

A new report, “New York’s Tipped Workers and the Sub-Minimum Wage,” was just released and the findings are grim. 

In New York City and statewide, tipped workers are more than twice as likely to live in poverty compared to non-tipped workers. Additionally, tipped workers rely more on public benefits like food stamps and Medicaid.

“The people who serve us drinks and meals and work full time should not be paid a sub-minimum wage. But that’s the reality for thousands of workers in New York,” said David R. Jones, President and CEO of the Community Service Society. 

Tipping is a hot topic in the U.S. as shown by this debate on Reddit

Should America raise the minimum wage? Would that solve the problem? Don't ask the governor of next-door New Jersey. 

“I’m tired of hearing about the minimum wage. I really am,” Chris Christie told an audience on Tuesday. He said he didn’t think there’s a parent in the U.S. who says their dreams would come true if their child made a higher minimum wage.

 

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