For more than a century tipping has been the preferred method for American restaurants to pay their servers. The idea is that customers will tip more if they receive good service, thus giving employees incentive to do well. However, the system doesn’t always work out that way. Besides getting outright stiffed by diners, on slow nights servers can earn as little as $2.13 an hour, the legal minimum that tipped employees can be paid. Given these less than ideal outcomes, Continue reading

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March 3, 2015

For years, Walmart has been criticized for not adequately sharing its success with its employees. After all, the retailer is not only the largest private employer in the U.S. but also the largest retail chain in the world. With so much capital at its disposal, critics have long argued that Walmart has enough resources to spend on its staff. And now at long last it appears the retailer agrees. Last month Walmart announced a plan that will raise the wages Continue reading

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July 20, 2014

 

In early June, Seattle Mayor Ed Murray signed a bill into law that will raise the city’s minimum wage to $15-an-hour. At more than double the federal level, Seattle’s new wage floor will become the highest in the country once it is fully implemented. Large businesses have until 2017 to reach the $15 mark while small businesses can wait as late as 2021. In both cases, wages will be slowly raised in the intervening years to make the process Continue reading

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January 19, 2014

Although the American economy is slowly recovering, the job market is not. Low and minimum wage work has driven much of the recovery while mid-level jobs that disappeared during the recession have failed to rematerialize. Confronted with this bleak “new normal,” many people in both the private and public sectors have called for an increase to the federal minimum wage. Advocates for change point to cases like that of Anthony Goytia, who must supplement his salary as a Wal-Mart clerk Continue reading

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