White House proposes minimum wage raise for tipped workers

By Balitang America Staff, ABS-CBN North America Bureau

March 26, 2014

REDWOOD CITY, Calif. – New for support for American employees as the White House proposes raising the minimum wage for workers who receive tips.

The federal minimum wage for workers who receive tips is $2.13 an hour. This is well below the minimum wage of $7.25 an hour.

The federal tipped minimum wage has stayed at the same level for more than two decades.

President Barack Obama wants to raise the full minimum wage to $10.10 dollars an hour, and the tipped minimum to $4.90 by 2016.

According to the White House, the increase would benefit low-income women.

Of the 3.3 million workers in tipped occupations, about two million are restaurant servers, 70 percent of whom are women.

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