Ruchira Nair et al.
Wed, 29 Apr 2026 13:50:00 PDT

Make the Minimum the Minimum is a policy proposal aimed at eliminating the subminimum wage for tipped workers by requiring employers to pay 100 percent of the standard minimum wage rather than relying on tips to fill the gap. In the United States, federal law allows employers to pay tipped workers as little as $9 per hour, assuming tips will raise earnings to the $15 minimum wage, effectively shifting income responsibility from employers to customers (U.S. Department of Labor). This structure creates income instability because tips are unpredictable and vary based on customer behavior, time, and location. According to the Economic Policy Institute, tipped workers experience significantly higher poverty rates than non tipped workers, with about 11.3 percent living in poverty compared to 6.5 percent of non tipped workers. In states that follow the federal tipped minimum wage of $2.13, poverty rates among tipped workers rise to nearly 14 percent, compared to closer to 10 percent in states that require employers to pay the full minimum wage regardless of tips (Economic Policy Institute). Research from the National Women’s Law Center shows that women make up nearly two thirds of tipped workers, meaning this system disproportionately affects women and contributes to gender based economic inequality. Additionally, the U.S. Bureau of Labor Statistics reports that millions of workers are employed in tipped occupations, many of whom depend on tips for a large portion of their income, increasing financial volatility. In contrast, states that have adopted a full minimum wage for tipped workers show improved economic outcomes. Analysis from the Center for American Progress finds that poverty rates in tipped industries are significantly lower in these states, demonstrating that a guaranteed wage floor improves financial stability. Requiring employers to pay the full minimum wage would create a stable income base, reduce dependence on unpredictable tipping, and improve economic security for millions of workers. This policy directly supports the United Nations Sustainable Development Goal 1, No Poverty, by addressing wage instability and reducing poverty among low income workers.