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In New Jersey there are over 150,000 tipped workers, and nearly 60% of these work in the restaurant industry. The restaurant industry employs nearly 10% of the workforce and is one of the fastest growing sectors of the economy. Unfortunately, the restaurant industry offers several of New Jerseys lowest paid jobs. Six of the ten lowest paid occupations are in the restaurant industry, and four of the ten are tipped occupations. The state minimum wage is $8.25, but the tipped minimum wage has remained frozen for the last 23 years at only $2.13. Including tips, tipped workers in New Jersey earn a median wage of only $9.00 equivalent to $18,720 for a full-time year-round employee. However, tipped workers generally are allowed part-time schedules that vary by season. Seven states have eliminated the tipped minimum wage in those states tipped workers receive the full minimum wage. Higher wages reduce turnover and pour millions of dollars back into the local economy.
58%
TIPPED OccUPATIONS
3 LOwEST PAID
MINIMUM wAGE
GENDER
61%
39%
EDUCATION
40%
HIGHER EDUcATION
PARENTAL
STATUS
Married 36% Parents 33% Dads 24% Moms 38% Single Moms 13%
MARITAL &
AGE RACE 32
MEDIAN AGE
33
% of tipped
POVERTY
ES
TAU R ANT
21%
wORKERS ON fOOD STAMPS
1.4x REST Of U.S. wORKfORcE
INDUSTRY GROWTH
the poverty rates for workers of color is nearly double that of the seven states without a tipped minimum wage, with one in four living in poverty.
White PeOple OF COlOr All
9%
The industry projects employment will continue to grow at the rate of 6% over the next decade.
HINDUSTRY PROjEcTED SALES 2014 14.6 bILLION
MINIMIM
Living off tips is precarious, but it doesnt have to be this way. Raising the minimum wage and eliminating the tipped credit would provide a signicant stimulus to the U.S. economy in tipped wages alone, providing a boost to local economies and the broader food industry, as well.
WAGE
TIPPED
OR
KERS
PP
10%
12%
OV
OV
ERTY RAT
ED wORKE
ERTY RAT
RS E
TI
TIPPED