Bill Overview
Title: Tipped Worker Protection Act
Description: This bill increases the minimum wage for tipped employees over a phase-in period and provides a process for employers to pool and distribute tips.
Sponsors: Rep. Hayes, Jahana [D-CT-5]
Target Audience
Population: Tipped workers
Estimated Size: 4300000
- The bill primarily affects tipped employees, who are a broad group of workers in many service industries.
- Tipped workers often include servers, bartenders, baristas, hairdressers, and other positions where tipping is customary.
- The bill may indirectly affect employers who hire tipped workers, as they will need to adjust payroll and tip distribution processes.
- Consumers who frequent establishments with tipped workers may also be indirectly impacted, as changes in compensation might influence pricing and service charges.
Reasoning
- The policy targets tipped workers, who total approximately 4.3 million in the U.S., the primary beneficiaries of the policy.
- Since the minimum wage will gradually increase, it will have a direct financial impact on service workers who rely heavily on tips.
- The phased approach to increasing wages and adjusting tip pooling processes allows for incremental adjustments for both businesses and employees.
- A segment of the population, particularly those unaffected by tipping industries, may see no direct impact.
- Within the service industry, workers' economic wellbeing is likely to improve with more stable income, influencing their overall life satisfaction.
Simulated Interviews
Server (New York, NY)
Age: 22 | Gender: female
Wellbeing Before Policy: 6
Duration of Impact: 20.0 years
Commonness: 3/20
Statement of Opinion:
- I'm really hoping this bill passes because, with rent and everything going up, I need any extra I can get.
- I'm worried about how the management will implement the new tip pooling. Will it be fair?
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 6 |
| Year 2 | 7 | 6 |
| Year 3 | 8 | 6 |
| Year 5 | 8 | 5 |
| Year 10 | 9 | 5 |
| Year 20 | 9 | 5 |
Bartender (Dallas, TX)
Age: 34 | Gender: male
Wellbeing Before Policy: 5
Duration of Impact: 10.0 years
Commonness: 4/20
Statement of Opinion:
- This is a step in the right direction, but I'm wary of how my bar will actually handle the tip changes.
- Having a minimum wage I can count on is great, even if it takes a few years to phase in.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 5 |
| Year 2 | 6 | 5 |
| Year 3 | 7 | 5 |
| Year 5 | 8 | 5 |
| Year 10 | 9 | 6 |
| Year 20 | 8 | 6 |
Barista (San Francisco, CA)
Age: 29 | Gender: female
Wellbeing Before Policy: 7
Duration of Impact: 5.0 years
Commonness: 5/20
Statement of Opinion:
- The cost of living here is insane, so anything helps.
- I hope the transition won't lead to big price hikes at the café.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 7 |
| Year 2 | 8 | 7 |
| Year 3 | 8 | 7 |
| Year 5 | 9 | 7 |
| Year 10 | 9 | 7 |
| Year 20 | 9 | 7 |
Hairdresser (Chicago, IL)
Age: 41 | Gender: male
Wellbeing Before Policy: 6
Duration of Impact: 5.0 years
Commonness: 4/20
Statement of Opinion:
- Seems like good news, though it's the salons in fancier areas that might resist changes.
- I welcome a dependable base wage while I try to expand my soap business.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 6 |
| Year 2 | 7 | 6 |
| Year 3 | 7 | 6 |
| Year 5 | 8 | 6 |
| Year 10 | 8 | 6 |
| Year 20 | 8 | 6 |
Hotel Housekeeper (Miami, FL)
Age: 56 | Gender: female
Wellbeing Before Policy: 5
Duration of Impact: 2.0 years
Commonness: 6/20
Statement of Opinion:
- Honestly, I don't believe this will change much for us housekeepers.
- If implemented, it could help younger tipped staff more than me.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 5 | 5 |
| Year 2 | 5 | 5 |
| Year 3 | 6 | 5 |
| Year 5 | 6 | 5 |
| Year 10 | 6 | 5 |
| Year 20 | 6 | 5 |
Busser (Seattle, WA)
Age: 19 | Gender: other
Wellbeing Before Policy: 6
Duration of Impact: 8.0 years
Commonness: 5/20
Statement of Opinion:
- It's my first job, so any extra helps.
- My parents think this will mean fewer customers if prices go up.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 6 |
| Year 2 | 7 | 6 |
| Year 3 | 8 | 6 |
| Year 5 | 8 | 6 |
| Year 10 | 9 | 7 |
| Year 20 | 9 | 7 |
Casino Waitress (Las Vegas, NV)
Age: 47 | Gender: female
Wellbeing Before Policy: 7
Duration of Impact: 0.0 years
Commonness: 3/20
Statement of Opinion:
- My situation might not change, but newer staff could benefit from the safety net.
- We'll have to see how the pooling affects us since our tips are currently good.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 7 |
| Year 2 | 7 | 7 |
| Year 3 | 7 | 7 |
| Year 5 | 7 | 7 |
| Year 10 | 8 | 7 |
| Year 20 | 8 | 7 |
Caterer (Atlanta, GA)
Age: 30 | Gender: male
Wellbeing Before Policy: 6
Duration of Impact: 1.0 years
Commonness: 5/20
Statement of Opinion:
- This policy might not directly affect me since I'm freelance, but there might be ripple effects.
- Overall, higher wages are good for the economy.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 6 |
| Year 2 | 6 | 6 |
| Year 3 | 7 | 6 |
| Year 5 | 7 | 6 |
| Year 10 | 7 | 6 |
| Year 20 | 7 | 6 |
Nail Technician (Los Angeles, CA)
Age: 26 | Gender: female
Wellbeing Before Policy: 5
Duration of Impact: 8.0 years
Commonness: 5/20
Statement of Opinion:
- Increased wages can mean my boss has less room for hiring freezes, which might stabilize my hours.
- I hope it won't hurt our salon's pricing.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 5 |
| Year 2 | 7 | 5 |
| Year 3 | 7 | 5 |
| Year 5 | 8 | 5 |
| Year 10 | 8 | 5 |
| Year 20 | 8 | 5 |
Taxi Driver (Boston, MA)
Age: 63 | Gender: male
Wellbeing Before Policy: 5
Duration of Impact: 0.0 years
Commonness: 2/20
Statement of Opinion:
- This policy won't directly affect me, but I support fair wages for younger generations.
- With rent increasing, everyone needs more assurance in their paycheck.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 5 | 5 |
| Year 2 | 5 | 5 |
| Year 3 | 5 | 5 |
| Year 5 | 5 | 5 |
| Year 10 | 5 | 5 |
| Year 20 | 5 | 5 |
Cost Estimates
Year 1: $800000000 (Low: $600000000, High: $1000000000)
Year 2: $900000000 (Low: $700000000, High: $1100000000)
Year 3: $1000000000 (Low: $800000000, High: $1200000000)
Year 5: $1200000000 (Low: $1000000000, High: $1400000000)
Year 10: $1500000000 (Low: $1300000000, High: $1700000000)
Year 100: $2000000000 (Low: $1800000000, High: $2200000000)
Key Considerations
- The phased approach to increasing the minimum wage may ease immediate economic impacts but still results in significant long-term cost changes.
- Administrative burdens on employers to change payroll systems and ensure compliance with new tip pooling regulations.
- Potential changes in consumer behavior due to possible price adjustments in service industries.