Saturday, March 29, 2014
From Reuters, White House Urges Higher Pay for Tipped Workers
The White House said on Wednesday raising the minimum wage for workers who receive tips would disproportionately benefit low-income women and help close the gender pay gap in which men earn higher pay than women.
The federal minimum wage for workers who receive tips is $2.13 an hour - well below the minimum wage of $7.25 an hour. Even though employers are required to make up any shortfall between the tipped minimum and the standard minimum if gratuities fall short, one in 10 workers earn less than the minimum wage, the White House said.
"This provision is difficult to enforce," the White House Council of Economic Advisers said in a report. The president has asked Congress for an 18 percent, $41 million increase in funding for Department of Labor Wage and Hour division investigators to hold employers to the law.