Ending Hunger in America, 2014 Hunger Report Full Report | Page 76

BOX 2.1

RESTAURANT WORK
Seven of the nation’s 10 worst-paying jobs, according to the Department of Labor, are in the restaurant
industry.34 From five-star establishments to fast food, low wages are the norm. In fact, we can tell to what
extent the economy is still struggling from the effects of the Great Recession by the rate of job growth in
the food service sector. In a strong economy, many jobs in restaurants go unfilled because higher-paying
jobs are available elsewhere. Presently, job growth in the restaurant sector remains strong—an ominous
sign for the nation’s economic recovery.
The server in a restaurant where you recently ate could be earning as little as $2.13 per hour, the
federal “subminimum wage” for this job. Many Americans do not realize that the federal minimum wage of
$7.25 an hour does not apply to all jobs—the law allows exemptions for specific job categories, including
restaurant servers who can receive tips. In white tablecloth restaurants, tips can be a significant source
of income, but for most restaurant
workers they are not. One result is
Figure 2.3 Gender Composition of Low Paid Workers in the

Restaurant Industry
that servers are three times as likely
to live in poverty as the workforce
Gender composition of non-tipped
Gender composition for tipped
as a whole.35 On the other hand,
restaurant workers with $7.25
restaurant workers with $2.13
Federal minimum wage
Federal subminimum wage
the National Restaurant Association
(NRA) projected that restaurant
sales would top $660 billion in
Men
2013.36
34% Women
Men Women
In the past, the tipped minimum
52%
48%
wage was tied to the overall
66%
minimum wage, but since 1991,
the tipped wage has been frozen at
$2.13, while the minimum wage has
received raises. The tipped wage
The large majority of workers in tipped occupations impacted
by the subminimum wage of $2.13 are women.
was officially severed from the
minimum wage as part of welfare
Source: Restaurant Opportunities Center United (2012), Tipped Over the Edge: Gender Inequity
in the Restaurant Industry.
reform legislation of 1996. The
NRA, which represents 380,000
37 lobbied hard for this provision. During the 1994 and 1996
restaurant companies in the United States,
election cycles, the NRA contributed more than $90,000 [$142,000 in 2013 when adjusted for inflation]38 )????????????????????????????????????????????????????????????????????????????????????)???????]??????????????????????????????????????????????????????????????????????????)????????????????????????????9I???((???
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