Raising the Wage

How much do you tip? 15% and 20 if the service is good? 20% all the time? 10%? What if you knew that 70% of tipped workers were women, and they made as little as $2.13 per hour? 

This week, NOW National President Christian F. Nunes speaks with Saru Jarayaman, the co-founder and president of One Fair Wage, about the fight for economic equality, why tipped workers in the United States are a legacy of slavery, and what we all can do to make sure everyone earns a living wage. 

Take Action NOW: https://now.org/issues/economic-justice/ 

Register for the NOW National Meeting: https://now.org/2024nowconf/ 

Listen to new episodes of Feminism NOW released every other Wednesday. To find out more about the National Organization for Women, visit our website.

Creators & Guests

Host

Christian Nunes

Producer

Bethany Brookshire

Editor

Reese Clutter

Guest

Saru Jarayaman

What is Feminism NOW?

Passionate about modern feminist issues? Want to learn more about how today's political, academic, and cultural leaders strive for a future of universal equality and justice?

Join NOW President Christian F. Nunes in a new podcast dedicated to intersectional feminist discussions in American society with leaders in entertainment, sports, politics, and science. From conversations on constitutional equality, to economic justice and reproductive rights, listeners will find new ways to learn, engage, and get empowered.

Listen for new episodes released every other Wednesday.

(mellow music)

- Welcome back to "Feminism NOW",

a podcast featuring leaders and activists

who are on the front lines of the fight

for constitutional
quality, economic justice,

and reproductive rights.

I'm Christian F Nunes,
the National President

of the National Organization for Women.

And as you probably know by
now, the theme of this season

is Women Leading Democracy.

That leadership can take many forms,

and one of them is
pursuing economic justice.

Civic equality for women and
non-binary people can only come

when we have economic equality too.

That's why economic justice
is one of NOW's core issues.

Of course, we'd love
to hear your thoughts,

so please send us an email
at [e-mail].

And in the meantime,
let's talk fair wages.

(upbeat music)

Let's start with a
question for our listeners.

How much do you tip?

Maybe you're one of those people

who thinks 15% of the bill is just fine

and 20% if service is great,

or maybe you tip 20% no matter what.

It seems like an imposition,

asking for money on top of
the money you already paid.

Why does the US have a culture

of tipping in the first place?

The service industry,
particularly food service,

is sometimes called the
nation's training ground.

63% of US adults have worked
in the restaurant industry

and 70% of those tip workers are women.

And yet the federal minimum wage

for tip workers is only $2.13 per hour.

The restaurant industry has seven

of the lowest paying jobs in the country.

Many people working in
food service are likely

to need food assistance.

In light of that, tipping begins to seem

like a much more important conversation

than just how much you're adding

to the total of your credit card.

Why don't tip workers make a living wage?

To find out, I'm so happy today
to talk to Saru Jayaraman.

She's a co-founder and
president of One Fair Wage,

an organization fighting for all Americans

to make minimum wage, no tips required.

Saru, welcome.

- Thank you for having me.
- So first,

I would like to get started.

First of all, can you
tell us a little bit more

about the One Fair Wage campaign
and how that gets started?

I know it kind of started
around the time of 9-11.

Can you tell our
listeners more about that?

- Absolutely.

So on September 11th,
there was a restaurant

at the top of the World
Trade Center Tower One

called Windows on the World.

On that morning, 73 workers
died in the restaurant

and about 250 workers lost their jobs

in that one restaurant.

13,000 lost their jobs citywide.

And we started a relief center

for workers first in New
York, restaurant workers,

and then all over the country,
grew all over the country.

And everywhere we went, workers
would say, it's my wages,

it's my wages, it's my
wages, that's the problem.

And when we looked at the government data,

we learned why.

The restaurant industry
has been the largest

and fastest growing private
sector employer for decades.

But it's been the absolute
lowest paying employer

for generations, dating all
the way back to Emancipation

when the wage structure

in the restaurant industry was created.

And today, as a result of
that legacy of slavery,

we have a subminimum
wage for tipped workers

that is still just $2.13 an hour

that affects a workforce
that is overwhelmingly women,

single moms working as
servers and bartenders

in restaurants across America.

So our mission is to raise
all wages across the country

and end the subminimum wages

like the subminimum
wage for tipped workers

that forces a population of mostly women

to have to tolerate a lot
of harassment to get tips.

- Thank you for sharing that
information with us, Saru.

I think one of the strongest
statements you make

when you talk about the
history of tip workers

and minimum wage is the history

that talks about the
legacy of slavery in that.

And I don't think a lot of
listeners know about that

and how that has really gone back that far

from Emancipation and slavery.

Could you tell us a
little bit more about how

that is directly tied to,
in our country, to slavery?

And why this is still such a problem

and shows the problem with
parts of structures of tip work

and wages as we still see today?

- Yes, absolutely.

And it's also very good
to talk about this history

as the tail end of Women's History Month,

because this in my mind is
both a legacy of slavery

and the original gender
and race pay equity issue.

So look, pre-Emancipation until 1853,

waiters in the US were mostly white men

and they got actual wages, no tips.

Tipping was not prevalent at the time.

In 1853, they went on
strike for higher wages,

and in response, restaurants
who didn't wanna pay them more

started replacing them
with guess who, women.

And after about 10 years

of the industry moving more towards women

who they paid less to,

after 1865, they started to
think of an even better source

of even cheaper labor, which was

they wanted to hire
newly freed Black people

moving up from the south.

There were two industries, in
fact, that sought to do this.

One was the restaurant
industry hiring Black women,

and the other was the
Pullman Train Company

hiring Black men.

Both industries told these Black workers,

you're going to only get tips, no wages.

And in response to that,

the Pullman car porters
organized the first Black union

in the United States and won
the right to one fair wage,

a full minimum wage with
tips on top in 1937.

But the Black women in
the restaurant industry

never got that, because in response

to the Pullman car porters organizing,

the restaurants formed something called

the National Restaurant
Association in 1919

that is still around today,
and is led by the chains

and has been arguing since 1919

that they shouldn't have
to pay their workers,

who are still overwhelmingly women,

disproportionately women
of color 100 years later,

they shouldn't have to pay their workers

because customers pay
their workers in tips

and therefore they shouldn't have to.

And that has resulted 100
years later in a workforce

that is the lowest paid, the
poorest workforce in America,

and as I said, the highest
rates of sexual harassment

because these women have to put
up with so much to get tips.

So it's important that
listeners understand

that the women we're talking about

don't largely work in fine dining.

That's actually a very
small tiny percentage.

These are mostly women working

in very casual restaurants and bars,

IHOPs, Denny's, Applebee's,

struggling with three
times the poverty rate

of other workers, using food
stamps at double the rate.

And as I said, experiencing
the highest rates

of sexual harassment of
any industry in the US

'cause they have to put up
with so much to get those tips.

- You bring up excellent points,

because one of the things I
think is so very interesting

when we think about this is truly like,

the fact that only the intersections
between sexism, racism,

that we often talk about and see

when we are talking about this struggle

of oppression and discrimination,

that once again, women
and Blacks, you know,

and brown people were always the ones

who were the most oppressed
and discriminated against,

but often women of color, right?

That continue, that we see
perpetuate in these systems.

But also the fact that we're also seeing

that there's also the degradation

and the disrespect and
the lack of integrity

and dignity that's shown
what they have to deal with.

You know, to even try to earn livings.

And then they're still
faced and still working,

even themselves below the
poverty line a lot of times

just trying to earn a living.

And we don't think about this.

And they're often having to
seek assistance even occur.

And now we're seeing that
there is even an increase

in subminimum wage jobs.

Why do you think that is?

- So as long as the restaurant
industry gets this exemption

that they get to pay
workers a subminimum wage,

every other industry is
gonna want that exemption.

They're gonna want to be able
to pay people $2 as well.

So people keep asking,

why am I tipping at the
kiosk in the airport?

Why am I tipping in a coffee
shop when I never used to tip?

Why am I tipping at
this retail environment?

And it's because more and more industries,

as long as there is a subminimum
wage for tipped workers,

are trying to emulate
the restaurant industry,

introduce tipping

and drive their workers' wages
down to a subminimum wage.

So you're seeing the growth
of subminimum wage workers

as long as there is a subminimum wage.

There are also other subminimum wages.

There's a subminimum wage for
workers with disabilities.

There's a subminimum wage
for youth in many states.

There's a subminimum wage
for incarcerated workers.

That's another legacy of slavery.

But the biggest workforce

of subminimum wage
workers is tipped workers.

And unfortunately that group
of tipped workers is growing

because as long as we
allow a subminimum wage

for tipped workers, every other industry

is going to want that exemption.

- We've outlined the problems
with below minimum wage,

and we're going to talk
about the solutions next.

But first it's time for Action
NOW, our podcast segment

where I get to tell you about some

of the important issues
impacting women today.

We're excited to let you know

about our upcoming national conference,

which will be held virtually
from July 19th to July 21st.

Such a wonderful opportunity for all of us

to get excited about NOW and
find community with each other.

This year's topic is
Women Will Save Democracy,

No Democracy Without Intersectionality.

And we're thrilled

to present speakers in
action oriented workshops.

And it's your chance to get involved.

Oh yeah, and it's election year
for the National NOW Board.

Go to now.org to register
for the conference,

and we hope to see you there.

Join us at our meeting and
help us take action now.

And now back to our interview.

So tell me, we've talked about some

of the major problems here

with below minimum wage and tipping.

So tell us exactly what
is One Fair Wage doing

to help fight back and to help
change this in our country?

- Well, we actually are experiencing

an incredible, historic moment.

That's actually one of the
silver linings of the pandemic.

You know, during the pandemic,

things got really much worse
than everything I've described.

During the pandemic, workers reported

that they couldn't get
unemployment insurance

'cause in most states they were told

that subminimum wage was too
low to qualify for benefits.

Then they went back to work

and they reported tips had gone down,

sexual harassment had gone up.

We had heard from so many
women, "I'm regularly asked,

take off your mask so I
can see how cute you are

before I decide how much to tip you."

And those horrific conditions,

also, so many workers being
asked to enforce COVID protocols

on the same people from
whom they had to get tips.

Look, that resulted in
12,000 workers dying

in the restaurant industry.

Our industry was second only to healthcare

in the number of workers who died.

But second to dying
also, you know, horrible,

was just the conditions
these workers faced

and continue to face.

So 1.2 million workers walked off the job,

left the restaurant industry,

said I cannot put up with this anymore.

And that mass exodus has led
to thousands of restaurants

raising wages to recruit staff.

And 2022 we were realizing,
we're in such a historic moment,

first time since Emancipation

that workers are resoundingly rejecting

these wage structures en masse.

We launched something called 25 by 250

where we're moving bills
and ballot measures

in 25 states, half the country

to raise wages and subminimum wages

by the United States' 250th anniversary,

which is coming up in 2026.

So we are moving currently
bills in like, nine states,

New York, Illinois, Connecticut, Maryland,

just a ton of states, Hawaii,

all over the country, California.

But we're also on the ballot
this year in four key states,

Michigan, Ohio, Arizona,
and Massachusetts.

And being on the ballot
with wage increases

means that workers will
have the opportunity

to go vote themselves
a raise this November.

And so for anybody who's
worried about, you know,

this presidential election,
this Senate election,

which is, you know, pretty
scary and pretty important,

these initiatives are going to help

drive out a ton of young
people and people of color

who have named in polls
over and over again

that the top issue that they
are prioritizing this election

is the rising cost of living
and jobs with living wages.

So we are putting these
issues directly on the ballot

so that workers have the chance

to go vote themselves a raise.

- Which is so important,

because when we're talking about

what's directly impacting people,

it's things like a living wage.

When it comes to housing,

when it comes to being
able to feed your child

or your children or your family
or your parents or yourself.

I mean, these are the things
that directly impacting you.

So this is why One Fair Wage
campaign is so important

And NOW is definitely
supporting you in this campaign,

and you know you can always
call on me for this as well.

And I know you had some
successes, even, you know,

in Michigan and some other states,

and you know, you been
to DC, and you know,

and you continue to have some
successes in a lot of places.

So we wanna continue to see
some successes continue.

So as we talk, we know also
there's a push for federal.

But what are some of the
challenges that you're seeing here?

I think we kind of know them,

but can you tell us what
those challenges are

and what our listeners

and our activists can do to
help encourage the federal push

for One Fair Wage as well?

- In 2021 we had a bill moving

when Biden first came into office

called the Raise the Wage Act.

It would've raised the wage to $15

and ended all subminimum
wages for tipped workers,

workers with disabilities, and youth.

It passed the House.

We almost got it through the Senate,

but eight Senate Democrats
along with all the Republicans

voted against it.

And at that time, Senator
Schumer said, you know,

it's really the Restaurant
Association that's blocking this.

So two strategies to win.

One is the more states
we can get to raise wages

and end subminimum wages,

the less power the Restaurant
Association will have

at the federal level,

because there already
would've agreed to it

in a lot more states.

One is to get this done
at the state level,

lots and lots of states
doing this is gonna diminish

the power of the Restaurant Association

and get more senators to vote yes.

And part of that state fight
is that we have four states

where we put the issue directly
on the ballot this year,

Michigan, Ohio, Arizona,
and Massachusetts,

where 3.5 million workers
will have the opportunity

to go vote themselves
a raise this November.

And for all of us that are worried

about this year's election,
presidential, Senate elections,

House races, and worried
about voter turnout,

young people and people
of color have named

in multiple polls that
the rising cost of living

and jobs with living wages are
their top concerns this year.

Which should be of no
surprise to most of us

that are still experiencing
the very high costs of living

right now across the country.

So people are really
saying, that's my priority,

the ability to go vote yourself a raise

means that you'll go to the ballot

moreso than you would for any candidate.

And while you're at the ballot,
data shows you're likely

to go vote for somebody
who supports that raise.

And so Joe Biden has run
on the issue in 2020.

He's likely to run on it again in 2024.

So there's a real opportunity
for us to defeat Trump

by putting these issues
directly on the ballot

and mobilizing lots and lots of people

to go vote themselves a raise.

But the second thing is we can

continue to tell our federal legislators,

stop listening to the likes

of the National Restaurant Association

and listen to the people.

When you ask the people of America

in pretty much any state,
red state or blue state,

should people get a living
wage from their boss,

the overwhelming answer
is of course they should.

And when you ask them,
should restaurant workers get

a full minimum wage before tips,

most people say, what
are you talking about?

I thought they already were getting

a full minimum wage before tips.

So it's so popular.

We just need to tell
our federal legislators

we need to get this done.

If you're in those states,
please be in touch.

We wanna work with you
to get the vote out.

If you're not in those states,
help us by either donating

or you can still do phone
banking from other states.

But be in touch 'cause
we'd love to work with you.

- Thank you so much.

I think everyone,

Saru has told us our call to action,

that is to continue to push
in our states to make sure

our states are passing and
raising the minimum wage

so then that it gives more pressure

on our federal government

to also push and make
sure that we get it done

in that place.

So Saru, thank you so much
for being here with us today.

You have taught us all
so much about history

and what it takes to change the game.

And we know that you
are going to make sure

and One Fair Wage is gonna
make sure it gets done.

So we thank you for your time.

If you wanna know more about
the One Fair Wage campaign,

where can they learn about that?

- You can go to www.onefairwage.org.

- Alright, thank you.

And I look forward to seeing more action,

everyone getting involved.

And we are going to get that wage raised

because everyone deserves
to be able to live

a sustainable, healthy life.

All right, thank you Saru.

- Thank you so much for having me.

- Thank you so much, Saru.

And there you have it.

This is how we get involved

and this is how we get
our issues on the ballot

to help us change our lives.

Thank you.

And let's get the One Fair
Wage passed and pushed.

Thank you, listeners, for being with us

as we use season two of our podcast

to showcase people making
a real difference to women

and their allies in our democracy.

(upbeat music)