In one map, what is the percentage of restaurant workers' income that comes from tips in each U.S. state?
Restaurant employees, including waitstaff and bartenders, commonly depend on tips to sustain their livelihoods.
The minimum wage for tipped workers is significantly lower than the regular minimum wage, with the federal minimum wage at $7.15 an hour and the minimum tipped workers' hourly wage at $2.13.
Restaurant workers nationally earn an average of 23% of their income from tips, but employers must make up the difference if tips do not bring the worker's hourly wage up to the minimum wage.
According to Square, the average percentage of restaurant workers' incomes from tips in every U.S. state as of September 2024 is:
Wyoming has the highest percentage of restaurant workers earning tips, with an average of 33%, according to Square.
According to Square data, restaurant workers in Wyoming earn an average of $11.09 per hour, plus $5.34 in tips. However, as of 2024, customers tip an average of 16%, which is slightly lower than last year's average.
A recent Bankrate survey revealed that 35% of Americans believe the tipping culture has become excessive.
According to Bankrate, consumers are frequently faced with the dilemma of deciding whether to tip more frequently, with pre-determined amounts displayed on electronic screens. While tipping at sit-down restaurants is a common practice in the United States, there is less consensus on tipping for services such as food delivery, hotel housekeeping, and rideshares.
It can be challenging for restaurant workers to make ends meet on minimum wage.
In Wyoming, a single person without children would need to earn approximately $21 per hour to cover basic necessities such as housing, food, and transportation, according to MIT's living wage calculator. Although the minimum wage in Wyoming is lower than the federal rate at $5.15 per hour, workers are required to earn at least the federal minimum wage of $7.25.
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