By Nina Mast

This spotlight details the racist history of tipping, federal and state policy governing tipped work, and the experience of tipped workers in the economy—both nationwide and in the South. Across the country, tipped workers are more likely to be people of color, women, women of color, or single parents, and are disproportionately born outside of the United States. Tipped workers earn low wages, experience high rates of poverty, and are vulnerable to exploitation in the workplace—particularly in the form of wage theft and sexual harassment. The South has the largest tipped workforce of any region. Tipped workers in the South are paid the second lowest median wage of any region, and most Southern states allow employers to pay tipped workers as little as $2.13 an hour. Hispanic workers in the South are overrepresented in tipped work, as are women—who account for 70% of the tipped workforce despite making up less than half of all workers in the region.

Washington, DC: Economic Policy Institute, June 18, 2024. 14p.