Should the minimum wage be lower for workers who get tipped? Two states are set to decide

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Should the minimum wage be lower for workers who get tipped? Two states are set to decide
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Tynin Fries joined The Denver Post in 2018 as an intern. Then, she joined the team as a Digital Strategist and was promoted to Deputy Director of Audience in 2022. She is a proud ASU Cronkite alumna (#godevs)! In between producing news and writing stories, Tynin is out exploring all that Colorado has to offer.

Lindsay Ruck, a server at Phoenix Sky Harbor International Airport restaurants, pauses in Terminal 3 as she is anticipates the vote on Arizona Prop 138 on minimum wage Thursday, Oct. 3, 2024, in Phoenix.

Dan Piacquadio, owner of Harold’s Cave Creek Corral, stands at the front register as he is awaiting the results regarding Arizona Prop 138 on minimum wage Thursday, Oct. 3, 2024, in Cave Creek, Ariz. Dan Piacquadio, owner of Harold’s Cave Creek Corral, pauses at the restaurant’s concert stage as he awaits the results of the upcoming election results regarding Arizona Prop 138 on minimum wage Thursday, Oct. 3, 2024, in Cave Creek, Ariz.

The ballot measures reflect an accelerating debate over the so-called subminimum wage, which advocates say is essential to the sustainability of the service industry and detractors say pushes the cost of labor off employers’ shoulders and leads to the exploitation of workers. There, voters will decide on a measure to incrementally increase the state’s tipped worker wage — currently $6.75 per hour — until it meets the regular minimum wage by January 2029. The measure was put forward by One Fair Wage, a not-for-profit that works to end the subminimum wage.Data centers are a hot real estate trend, but will Colorado miss out on big projects?

Employers must ensure that workers get the full minimum if they don’t make that much with tips. But they don’t always comply with federal labor law. One in 10 restaurants and bars investigated nationally by the U.S. Labor Department between 2010 and 2019 violated a provision of the Fair Labor Standards Act, resulting in the establishments paying $113.9 million in back wages.

Proposition 138 was initially put forward as a response to a ballot measure pushed by One Fair Wage that would create a single minimum wage of $18, but the group abandoned the effort after threats of litigation from the restaurant association over how it collected signatures.

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