Sen. Akbari Files Bill to Increase $2.13 Tipped Minimum Wage
NASHVILLE — Sen. Raumesh Akbari (D-Memphis) filed legislation to increase the tipped minimum wage in Tennessee.
Under Senate Bill 1851, proposed by Sen. Raumesh Akbari (D-Memphis), the minimum wage for tipped employees would increase from the current $2.13 an hour plus tips to $7.25 an hour plus tips.
“The minimum wage for tipped workers in Tennessee is $2.13 an hour and it hasn’t changed since 1996,” Akbari said. “Tipped workers already have unpredictable pay and schedules. The least we can do is abolish the sub-minimum wage in Tennessee and provide some financial predictability to the thousands of hard-working people in the service industry.”
Under current law, businesses can pay certain workers less than the $7.25 federal minimum wage if those workers make most of their money in tips. These rules typically affect workers such as restaurant servers and bartenders. If the worker doesn’t earn enough tips to make $7.25 an hour, the employer is supposed to make up the difference.
Recent research suggests that tipped workers in Tennessee would benefit from the policy change, experiencing increased take-home pay and little to no change in total employment.
Seven states — Alaska, California, Minnesota, Montana, Nevada, Oregon and Washington — have eliminated tipped minimum wages or never allowed the practice.
