One Fair Wage Applauds Harris-Walz Campaign for Elevating the Fight to End Subminimum Wage for Tipped Workers, Addressing the Real Economic Crisis for Millions of Workers in the Service Industry

While Both Trump and Harris Campaigns Court the Votes of 14 Million Service Workers, Harris-Walz Stands Apart by Embracing Policies to End the Subminimum Wage and Taxes on Tips, Giving Millions a True Opportunity to Earn a Livable Wage

Boston, MA – Yesterday, the Harris-Walz campaign took a major step in addressing the economic challenges of one of the most sizable and influential workforces in America: the 14 million tipped service workers. By officially committing to ending the subminimum wage and eliminating taxes on tips, the campaign is embracing policies that will give millions of workers a real opportunity to earn a livable wage. This issue is especially critical in key swing states, where the sheer size and influence of these workers could sway the election. Many of them represent new and unlikely voters who are poised to turn out in record numbers if their economic concerns are addressed, with polls consistently showing that affordability and jobs with living wages are the top priorities for Latinx voters, young voters, and voters of color.

This move, which was highlighted on the campaign’s newly updated policy page, marks a critical moment in the fight to raise wages for millions of service workers, who currently earn as little as $2.13 an hour before tips. One Fair Wage, an organization committed to ending all subminimum wages, celebrated this announcement as a victory for workers and a pathway toward economic equity fair pay for all workers. 

While both campaigns have called for the elimination of taxes on tips, this policy alone would only benefit about one-third of tipped workers. Most workers wouldn’t see any real relief, as their earnings are too low for them to benefit from a tax cut. That’s why the Harris-Walz campaign’s commitment to ending the subminimum wage stands out — it acknowledges that eliminating taxes on tips is not enough, and that workers need a true wage increase by ending the $2.13/hr subminimum wage for tipped workers, allowing them to earn a full minimum wage with tips on top. 

In response to the announcement, Saru Jayaraman, President of One Fair Wage, issued the following statement:

“We are thrilled to see the Harris-Walz campaign embrace the fight to end the subminimum wage for tipped workers. For decades, service workers — the majority of whom are women and people of color — have struggled to survive on poverty wages. This policy will lift millions of people out of poverty, close racial and gender pay gaps, and provide a foundation for economic security that all working people deserve. Ending the subminimum wage for tipped workers is not just smart policy — it’s a winning policy,” Jayaraman continued. “Tipped workers are a sizable and influential workforce, and policies addressing their economic hardships could be the key to turning out those who have traditionally been left behind. Raising wages resonates with millions of Americans who have been left behind by the current system, and the Harris-Walz campaign’s commitment to this issue will not only energize voters but set the stage for a fairer, more equitable economy.”

As more states move to eliminate the subminimum wage, the push to end it nationally has gained significant momentum. Recently, Michigan became the eighth state to eliminate the subminimum wage for tipped workers, and states like Massachusetts and Illinois are following close behind with ballot measures and legislation slated for 2024. By taking this bold stance, the Harris-Walz campaign is aligning itself with a growing movement of workers and advocates fighting to create an economy where everyone can thrive.

As candidates from both parties work to gain the vote of the millions of low-wage and tipped service workers who are struggling to provide for themselves and their families, policymakers must address the core issue of increasing wages overall, including ending subminimum wages for tipped workers and raising the minimum wage so that all workers receive a livable minimum wage with tips on top.

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About One Fair Wage: One Fair Wage is a national organization comprising nearly 300,000 service workers, over 1,000 restaurant employers, and numerous organizations dedicated to raising wages for all workers, ending subminimum wages, and improving working conditions in the service sector. For more information, visit www.onefairwage.org.