Researchers at the University of Illinois surveyed more than 1,200 Chicago restaurant and bar employees who rely on tips and found that more than three-quarters are compensated at an hourly wage rate of less than the standard minimum wage.
The study's lead author Alison Dickson, a senior instructor in the School of Labor and Employment Relations, said when you have a system that allows customers to base someone else's wages on their interactions with them, that's a recipe for all sorts of bad outcomes.
According to her findings, roughly 77% of workers reported earning an hourly wage of between $9.24 and $15.40 an hour before tips. Fewer than 7% of workers earn more than $15.40 an hour before tips.
“For anyone who’s worked in a restaurant, bar or cafe, you have a pretty good idea of how the practice of tipping can lead to discriminatory practices – and how it oftentimes has much less to do with your ability to actually do your job well than your ability to withstand certain types of abusive behavior from customers,” said Dickson, also an affiliate of the Project for Middle Class Renewal.
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