Explain It to Me Is tipping fair?
Jul 27, 2025
Sophie Miyoshi, the executive director of the Restaurant Opportunities Center of Washington, D.C., and Richard Rubin, a tax policy reporter for The Wall Street Journal, dive into the complexities of tipping in the service industry. They explore the push for raising the tipped minimum wage and the implications of tax exemptions on tips. The duo discusses the historical roots of tipping in America and its link to wage disparities, shedding light on the ongoing debates around fair compensation for workers and the impact of recent legislative changes.
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Tipped Minimum Wage Reality
- The tipped minimum wage at the federal level is just $2.13 an hour, assuming tips bring workers up to the regular minimum wage.
- However, enforcement is lax and wage theft is rampant because the system relies on workers to track tips and hours.
D.C. Tipped Wage Ballot Battle
- Sophie Miyoshi shared how D.C.'s 2016 ballot initiative to raise tipped wages was met with strong opposition from the restaurant industry.
- Although it passed, the D.C. Council repealed it due to lobbying and fears of increased labor costs.
Pandemic Shift in Tipping
- The COVID-19 pandemic changed consumer behavior, leading to more tipping and donations to restaurant workers.
- This shift influenced renewed efforts and voter support for raising the tipped minimum wage in D.C.