EPI Research

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  Do Higher Tipped Minimum Wages Reduce Race, Ethnic, or Gender Earnings Gaps for Restaurant Workers?

  September 2024

  In recent years, labor activists have invested considerable financial resources in campaigns to eliminate what’s known as the tip credit. The tip credit represents the difference between a set base hourly wage for restaurant employees who regularly earn substantial tips, and the regular minimum wage rate. This difference counts regular tip income toward the minimum wage requirement. Legally, the Fair Labor Standards Act (FLSA) and…
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  Crisis in California: A Survey of Fast Food Employers' Responses to California's $20 Minimum Wage

  July 2024

  Effective April 1, 2024, many limited-service restaurant operators (also referred to as “fast food” or “quick-service” restaurants) in California are required to pay employees a minimum wage of at least $20 per hour. The law that increased this limit also allows for future increases to the quick service minimum wage based on recommendations of a Fast-Food Council. While those subject to the law may be…
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  Policy Snapshot Chicago: Chicago’s Restaurants Already Impacted by Tip Credit Elimination

  June 2024

  In the fall of 2023, Chicago’s City Council passed a full tip credit elimination bill that will go into effect on July 1, 2024. The law will raise the city’s minimum wage for tipped restaurant employees from $9.48 per hour to $11.02 per hour on that date, and continue to increase annually until restaurant employers will be required to pay the full minimum wage (currently…
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  Policy Snapshot DC: District of Columbia Lost Nearly 1,000 Restaurant Jobs Under Initiative 82

  June 2024

  Tip-credit elimination activists have upheld Washington, D.C. as a paragon of anti-tipping measures for their nationwide minimum wage advocacy. However, these activists have skewed data and ignored the evidence that shows Initiative 82 has wreaked havoc on restaurants and their employees in the District. The latest jobs report shows full-service restaurant employment continues to decline because of the measure. After Initiative 82, a ballot measure…
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  A Preliminary Review of the Just.Safe.Food Training Program

  November 2023

  Food safety is a critical part of restaurant jobs, not just for the customer, but for employees as well. While local and state requirements for training employees who handle food vary, there are also various programs designed to equip food service employees on proper safety, hygiene, and other techniques while handling, preparing, serving, and storing food in restaurants. One widely used training course is called…
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  The Job Loss Impact of a $17 Minimum Wage: As Many As 1.2 Million Jobs Lost

  July 2023

  Senator Bernie Sanders has proposed raising the federal minimum wage to $17 per hour, despite failing to receive support from members of his own party in 2021 for a nationwide $15 minimum wage bill. A large majority of economic research and American labor economists agree this proposal would have significant negative consequences for minimum wage employment. Using methodology developed by the nonpartisan Congressional Budget Office,…