CEI argues Murphy's $25 minimum wage bill would hurt tipped workers
This opinion piece from the Competitive Enterprise Institute argues against Sen. Chris Murphy's proposal to raise the federal minimum wage to $25 an hour and eliminate the subminimum wage for tipped workers. The author contends that tipped workers already earn well above the federal minimum wage of $7.25, and that eliminating the subminimum wage would reduce job opportunities for waiters, waitresses, and other service sector workers without necessarily boosting their wages.
Key quotes
Among its other bad features, Sen. Chris Murphy's (D-CT) proposal to raise the federal minimum wage to $25 an hour would also eliminate the subminimum wage for tipped workers.
That provision would likely reduce jobs for waiters, waitresses, and other service sector workers, most of whom already earn much more than the federal minimum of $7.25 an hour.
And those who stay employed won't necessarily see a boost in their wages.
At first glance, it is unclear why eliminating the subminimum wage for tipped professions would be necessary, even to those who accept the false argument...
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