The Pros And Cons Of Attending Minimum Wage

The fast-food workers are expressed as a pond in a bigger game. They have to deal with their low pay in order to ensure low prices by these franchises. Jencunas concerns go on to represent the beginning of a bigger chain effect. Briefly, he states that, “The average fast food store would go from profitable to unprofitable overnight. Some would close immediately, leaving their workers worse off than they were when working for $7.50 an hour, while others would raise prices and try and remain in business, hurting consumers” (“Don't Deserve Any More, or Less”). Evaluating his reasoning we see that if fast-food workers ask for a higher minimum wage, they will in return influence the profit margin and actually increase unemployment rate in this industry. The researchers go on to inform us that if their minimum wage increases the industry won’t be able to afford the change in their profit margin and result in bankruptcy. However, Mary Kay Henry, president of the Service Employees International Union, which supports the fast-food strike states a different claim:

Many low paid workers can thrive in society and get through their struggles, but the lack the respect that they deserve for what they do. Barbara Ehrenreich and Mike rose share their professional observations on this matter. Ehrenreich shares her research from a chapter in her book Nickeled and Dimed, called “Serving in Florida.” She focuses largely on how low-wage workers are oppressed and how little voice they have. She describes how difficult it is for low-income workers to survive month to month and what sorts of problems this lifestyle can cause. Roses share’s his experience in his article, “The Intelligence of the Waitress in Motion.” Rose focuses on how little credit low-wage workers receive for utilizing high level intelligence to get

Tipping encourages restaurant owners to pay employees low-wage salaries. Employers rely heavenly on tips as a form of salary for their employees. In an article written by The New York Times it explains how in some states there is an “exemption” that allows employers to pay very low-wage to those employees who receive tips. For example, in Kansas employees only get paid 1.59 per hour which is way under the minimum wage (The New York Times). But to be able to this the employee must make up in tips what would amount to the minimum wage per hour. So if the employee is not making the minimum wage in tips per hour it is the employers’ responsibility to make sure that server is earning minimum wage. That is still saving the employer a lot of money

Life as we know it is changing and maybe not for the best. People are making life-changing decisions without a second thought every second of every day. Is this the way anyone should be living their life? (TRANSITION?) Many who have or currently work in restaurants and other places of business within the food industry are demanding higher compensations without knowing the negative repercussions that could arise and take effect. It was recently discovered that, in 2014, around 71% of Americans favored an increase in minimum wages, yet less than half knew or understood the positive and negative effects that came with higher wages (procon.org). That is a very striking statistic and goes to show that people need to be educated before making a decision that could ultimately change the rest of their lives. I used to be one. So, before filling out your ballot and checking ‘yes’ or ‘no’ for the proposition to raise your state’s minimum wage that sounds so appealing, take a minute to understand what you are choosing, you may be surprised what you learn. In the end, it is your decision and freedom of choice to support or oppose the increase, but I believe we should stand against raising the minimum wage for all except servers who receive the tipped minimum wage of $2.13.

The minimum tipped wage should be raised. There are many reasons that an incease is due. The tipped minimum wage has been the same since 1991. And yet, the cost of living continues to rise. It has risen by 75% in the past 27 years due to inflation.

The thought that the simple act of tipping could solve such a complicated problem is an attractive thought, but it is just not probable. The authors believe that enough people will automatically tip more because they care about the income inequality gap. However, this is unlikely since Americans seem not to care, even if it is important to do so. For example, the voter turnout in the United States is very low. If people are not going to vote for their leaders, then how can the authors expect them to give more money to minimum wage

According to a study done by Perdue University, “…paying fast-food restaurant employees $15 an hour could lead to higher prices. Prices at those businesses could increase by an estimated 4.3%, according to the report” (Wihbey, Effects of raising the minimum wage: Research and critical lessons”). With a higher minimum wage, businesses must then pay their employees more, and to pay these additional expenses; they are coerced to charge more for their products, which impacts everybody, making it more difficult for people to provide for their families. The Cato Institute stated, “According to a review of more than 20 minimum wage studies observing price effects found that a 10 percent increase in the US minimum wage raises food prices by up to 4 percent” (Wilson, “Four Reasons Not to Raise the Minimum Wage”). If the federal minimum wage increases from $7.25 per hour to $15 per hour, it is being increased by slightly more than 206%, which, according to this study, could lead to almost an 84% growth in food prices. According to another study on the effects of an increase in the federal minimum wage on consumer prices in the Reason magazine, “Raising the minimum wage to $15 could increase the cost of food by 43%” (47: 10). After a significant increase in the federal minimum wage, the employees who did not lose their jobs would then be receiving

In 2014, Senator Patty Murray and Representative Robert Scott proposed the Raise the Wage Act, which would address the crisis of wage stagnation and income inequality (Economic Policy Institute). In an article by the Economic Policy Insitiute, it explains, what the act would do, and how to achieve it. The Raise the Wage Act would increase federal minimum wage to $12.00 by 2020, by slowing increasing the wage to $8.00 followed by an increase of a dollar a year for 4 years. It would also phase out the subminimum wage for tipped workers, such as waitresses. This act would benefit 35 million workers , and in the long run would increase economical sustainability, pump billions of dollars back into the economy because it would increase consumer spending, and greatly reduce poverty. It would also ensure that workers don’t get laid off because as these increases happen incrementally, business owners can plan out expense to fit the wage

Tipped workers are not just waiters. According to federal law a tipped waiter is someone who makes $30 tipps an month. That includes many people paid that much who don’t interact with the consume, such as dishwashers, janitors, and even the person at the ice cream place who makes your ice cream. All those people get paid around $30 tips a month. That is $953.04 diffrence a month from someone who gets paid minimum wage and works 8 hours a day and six days a week.

Back in 1966 The United States we established that tipping services should have a set minimum wage; It was set at 50% of the current minimum wage at the time. In 1991, when minimum wage was 4.25, tipping wage was at 2.13. (Stuart 2) It has not changed since that day in history. Contrary to the major accepted practice that tipping helps servers make more money If we abolish tipping, we will be able to lift those working in the service industry out of poverty, provide a better work environment for restaurants, and develop a new system to show gratitude towards those who do an exceptional job.

Since the year 1991, the United States minimum tipped wage for servers and waiters has been the same. From then til now, the minimum wage for non-tipped employees in the country has almost doubled causing a rift in equality in the workforce. Employees who depend solely on tips struggle to make a living and are forced to work more than one

Imagine haveing to work a full weeks worth of work to not be able to afford your bills? Minimum wage is alrady a problem to most, this is pushing people to the government for assistance. When in reality if they were paid minimum wage and had tips they wouldnt need the help as much. Remember the average tip is only 16.6% of what the average costomer orders, like letter 1 says in paragraph 2. Most states have found to benifit from

The database that I am planning on using in Unit eights is Tips. I am a firm believer in giving a waiter or a waitress is because they make so little money. As per industry specialists, tips in the US add up to about $40 billion a year. The normal tippers crosswise over most ventures give around 15% to 20%, and that it's dependably a smart thought to tip more. The inclination to tip is not selective to Americans. In an examination looking at tipping in the U.S. what's more, Israel, Azar found that individuals in the two nations would preferably tip than pay benefit charges, regardless of the way that individuals as a rule tip more than the settled measure of an administration charge. There's not an authoritative conclusion with respect to why,

“Paying your employees well is not only the right thing to do, but it makes for good business”-Jim Sinegal, CEO of Costco. Many of America’s employees are not being paid well, however, for the annual income of a full-time employee who works year-round is less than $16,000 (about $15, 080) according to the current federal minimum wage (Rebuilding). To put into retrospect how out-dated the federal minimum wage is, consider that the minimum wage of 1956 amounted to exactly $7.93 in 2009 (Henderson). How progressive is it that our nation’s workers being paid less today than workers from the 50’s? The federal minimum wage should be raised in order to assist families out of poverty, to ensure the effort and loyalty of workers, and

Tipping has emerged as a major method of compensating wait staff ever since the 1960s when Congress passed the provision within Fair Labor Standards Act legislation which introduced the “tip credit” (Allegretto & Cooper, July 10, 2014). The FLSA provision set the minimum wage for tipped employees at $2.13 per hour, given that the employees would ‘earn’ $7.25 per hour from tips. The government considers employees who earn more than $30 per month as tipped employees. The tipped minimum wage has adversely impacted tipped employees, which includes barbers, stylists, wait staff, doormen, etc., such that they need to provide a high level of service so they can receive generous tips. The tipped minimum wage provision assigns tipped employees to high poverty due to their low income salary levels.