'If the subminimum wage for tipped workers persists, the restaurant industry is unlikely to recover from its growing labor crisis, regardless of how much money the federal government hands out to business owners.'
"If the subminimum wage for tipped workers persists, the restaurant industry is unlikely to recover from its growing labor crisis, regardless of how much money the federal government hands out to business owners."Federal coronavirus relief programs gave U.S.
—a majority of whom are women and disproportionately women of color—have struggled to obtain assistance.To help them face the challenge of keeping their businesses afloat during the pandemic, restaurant owners had access to three different federal relief programs: the Paycheck Protection Program, the Restaurant Revitalization Fund, and the Employee Retention Tax Credit.
Congress—which has kept the federal subminimum wage for tipped workers at $2.13 an hour for more than 30 years—obliged, allowing businesses to access funds that came with few, and sometimes no, worker-friendly strings attached.
Given widespread difficulties in securing unemployment benefits, the report notes that"millions of workers returned to working in restaurants in the summer of 2020." Now that they are"hemorrhaging" workers after"decades of uncompetitive labor practices," restaurants face"the greatest staffing crisis of any industry," the report points out.
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