Business
Minimum Wage Should Rise To £15 For All Workers, Says TUC
August 24, 2022
October 21, 2024
Mel Nichols, a 37-year-old bartender from Phoenix, Arizona, experiences significant stress due to the unpredictable nature of her income. Earning between $30 to $50 an hour with tips included, her daily earnings fluctuate widely, with more bad days than good.
This uncertainty stems from a federal labour law that allows businesses to pay tipped workers less than the minimum wage, relying on customer tips to make up the difference. Nichols has worked in the service industry since her teenage years and highlights the lack of financial security in such jobs.
This issue is gaining attention, and in November, voters in Arizona and Massachusetts will decide whether to uphold this policy, which some see as vital for the service industry’s survival.
Others argue it unfairly shifts labour costs onto consumers and exploits workers.
Currently, 14 states pay tipped workers just above the federal subminimum wage of around $2 an hour, compared to $7 an hour for non-tipped workers, intensifying the debate over fair compensation in the service sector.
