In a fullservice restaurant, servers, customers, and restaurant owners all benefit from the tip wage. It maximizes server earnings, allows operators to hire ample waitstaff, and keeps menu prices affordable.
This optional compensation model means that tipped workers never make less than the prevailing minimum wage—in fact, they often make much more. Nationally, tipped servers take home a median of $27 an hour, with the highest-paid making more than $41 an hour.
The high earning potential of the tip wage is what draws servers to a career in the restaurant industry. That’s why restaurant workers want to preserve—not eliminate—the tip wage. And a majority of U.S. customers support the tip wage, too.
Last year, the tip wage was challenged by legislation in 17 states and three cities or counties. In each instance, tipped workers, restaurant owners, the state restaurant association and the National Restaurant Association worked together to stop the legislation and preserve the tip wage. Additionally, a ballot initiative to eliminate the tip wage in Massachusetts was solidly rejected by voters 63% to 37%.