Indiana follows federal minimum wage

guidelines. The federal minimum wage is

$7.25, but the tipped minimum wage is
even lower. It has stood at $2.13 for the last
23 years. In 1991 it was pegged at 50% of
the federal minimum wage. In 1996 it was
ofcially depegged from the minimum wage
and has remained frozen ever since. Including
tips, tipped workers in Indiana earn a median
wage of only $8.00 equivalent to $16,640
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.
The Rising American Electorate refers to the
demographic groups that are growing the
most rapidly, historically with lower voter
participation rates, but whose growing civic
engagement has been crucial in tipping the
scales in recent elections. Tipped workers
are primarily women, nearly 40% are moms,
and although many are married, half of these
are single moms. Although the median age for
tipped workers is 29, half of them are younger.
And they are racially diverse, overrepresented
by Latinos, Asians, and African Americans
compared to the broader workforce. They are
also a highly educated group. Tipped workers
are a snapshot of the RAE.
TIPPED WORKERS AND THE RISING AMERICAN ELECTORATE
THE STATE
OF TIPPED
WORKERS
In Indiana there are nearly 108,000 tipped
workers, and 69% 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
US economy. Unfortunately, the restaurant
industry offers several of Indianas lowest paid
jobs. Six of the ten lowest paid occupations
are in the restaurant industry, and two of
these are tipped occupations.
TIPPED
MINIMUM WAGE
$2.13
MINIMUM WAGE
$7.25
MEDIAN WAGE FOR
TIPPED WORKERS
INCLUDING TIPS
$8.00
GENDER
77%
2
3
%
Restaurant Opportunities Centers United
www.rocunited.org
BUSSERS, RUNNERS, AND
BARTENDER ASSISTANTS
2 LOWEST PAID
TIPPED OCCUPATIONS
TIPPED WORKERS WHO
WORK IN RESTAURANTS
69%
COUNTER ATTENDANTS
I NDI ANA
In states with a tipped minimum wage of $2.13,
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
POVERTY RATES IN $2.13 STATES
16% 25% 20%
POVERTY RATES IN STATES WITH NO TIP CREDIT
13% 14% 14%
TIPPED WORKERS AND THE RISING AMERICAN ELECTORATE
White 81%
Latino 8%
Black 7%
Asian 2%
Other 2%
<_
24 37%
25-34 23%
35-44 16%
45+ 24%
RACE
AGE
HIGHER EDUCATION
EDUCATION
PARENTS WITH CHILDREN
ON FREE LUNCHES
43%
MARITAL &
PARENTAL
STATUS
50
%
Married 33%
Parents 31%
Dads 18%
Moms 35%
Single Moms 18%
P
O
V
E
R
T
Y
Tipped restaurant
workers live in
POVERTY
at 3X the rate
of the Indiana
workforce.
RAISE THE MINIMUM WAGE
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.
FOR MORE INFO rocunited.org/stateoftippedworkers/
The industry projects employment will continue
to grow at the rate of 7% over the next decade.
H
INDUSTRY PROJECTED SALES 2014

9.5 BILLION
B
I
L
L
I
O
N
I
N
D
U
S
T
R
Y

G
R
O
W
T
H
49%
P
O
V
E
R
TY

R
A
T
E
P
O
V
E
R
TY

R
A
T
E
T
I
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P
E
D

R
E
S
T
A
URA
N
T

W
O
R
K
E
R
S
T
I
P
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E
D

WO
R
K
E
R
S
24
%
20
%
WORKERS ON
FOOD STAMPS
2X REST OF IN
WORKFORCE
16%
29
MEDIAN AGE
of tipped
worker moms
are single moms
MINIMIM
WAGE
$10.10
$12.00
$15.00
TIPPED
STIMULUS
$12.7
$19.4
$30.1