It’s Women’s History Month. At the Hawaii Workers Center’s recent town hall meeting that focused on eliminating the tip penalty, HWC lifted up local women who are tipped workers in the restaurant industry. Seven of 10 tipped workers are women. The restaurant sector has the highest percentage of single-parent, female-headed households of any sector, the highest rates of poverty. The restaurant industry also has the highest rate of sexual harassment.
More than 50% of all women in this industry report they are not earning enough with tips added to support themselves and their families. Dependency on tips is a source of economic instability and that instability creates an unstable workforce. And while Hawaii’s current tip penalty is $1 below the minimum wage (set to rise to $1.50 as the minimum wage gradually increases), this loss of $1 per hour, currently, adds up to more than $2,000 in a year. That is a big loss in income.
Some in the Hawaii Legislature have proposed making the tip penalty even greater. Fortunately, we have champions who agree with HWC and UNITE HERE! Local 5, to do otherwise. State Sen. Kurt Fevella (R) and Rep. Jeanné Kapela (D) have both championed legislation to eliminate the tip penalty. In fact, Sen. Fevella called it the “tip rip-off” — and he’s right. The subminimum wage severely disadvantages women, who are the backbone of the restaurant industry. The subminimum wage is a women’s issue.
Eliminating the subminimum wage removes tipped workers from having to depend on tips. The subminimum wage is a direct legacy of slavery, created at Emancipation to keep Black workers submissive and grateful. Any hold over of that ugly practice must go. Most restaurant patrons have no idea that their server is not earning the full minimum wage. Their tip offering is intended for a job well done — and not to make up for a lower wage.
One of us, Maria, very recently left her restaurant job because she needed “a more consistent wage” and earning a subminimum wage meant depending on tips alone to try to make a livable wage. Her wages were not predictable, so she had to seek other employment. And is the case with so many workers in Hawaii, Maria holds two jobs. She is an exemplar of what has come to be known as “the great resignation.” More than 1 million workers have left the restaurant industry. Of those who remain, 54% say they are leaving; and 80% say that a full, livable wage with tips on top would make them stay or return, according to surveys and research conducted by the national organization, One Fair Wage.
During this session of the Legislature, the Hawaii Workers Center and allies stopped a bill that would have increased the tip rip-off to 20% of the minimum wage. Unfortunately, however, legislation to eliminate the tip penalty was not successful. This tells us that we need to educate our legislators and others on the fact that most tipped workers are struggling to get by.
But we remain undeterred in addressing this injustice. The HWC and a growing list of allies and supporters are committed to continuing to organize women and all tipped workers until they receive the full minimum wage plus tips.
Julianna Davis and Maria Rallojay are members of the Hawaii Workers Center; Charlotte Murphy, a server, is a member of UNITE HERE! Local 5.
