How Tipped Minimum Wage Traps Workers in Poverty

Episode 24 of Inequality Conversations tackles the tipped minimum wage — a relic of the 1966 Fair Labor Standards Act that still allows employers in 43 states to pay servers $2.13 an hour before tips. Lucas and Luna break down the history, the economics, and the data: why the federal tipped minimum hasn't changed in over 30 years, how it creates a gendered and racialized wealth gap, and what happens in the seven states that have abolished it. They look at a 2023 study from the Economic Policy Institute showing tipped workers are twice as likely to live in poverty, and a 2025 report from One Fair Wage showing that states with a single minimum wage have lower turnover and higher restaurant revenue. The episode drills into the specific case of Michigan, which repealed its lower tipped wage in 2024, and what that means for workers and owners. No hot takes, just the numbers and the stories behind them. #TippedMinimumWage #WealthGap #IncomeInequality #EconomicJustice #LaborEconomics #FairLaborStandardsAct #MinimumWage #OneFairWage #RestaurantWorkers #PovertyWage #GenderPayGap #RacialWealthGap #Michigan #EconomicPolicyInstitute #ServiceIndustry #WorkerRights #BusinessPodcast #FexingoBusiness Keep every episode free: buymeacoffee.com/fexingo