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How the push for minimum wage is leaving behind tipped workers

(FINANCE NEWS) It makes sense that as the cost of living increases, the minimum wage would rise to reflect that. So why has tipped worker wage been the same since 1996?

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Real world hustle

Many a professional has entered the work force through a customer service-based position. Some stick with the position(s) for a little bit, gather a few retail or restaurant horror stories, and move on to other opportunities. Some folks thrive on the often fast-paced environment and make a career of it. Regardless, it is safe to say that when starting out on this career path, the job seeker will likely be making somewhere around minimum wage. However, one of the primary reasons job seekers are drawn to restaurants is the opportunity to make some extra cash in tips.

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The rise of the wage

Since 2009, the federal minimum wage has been set at $7.25 per hour, though the rate is higher in many states. Recently, efforts have gained traction in once again raising the federal minimum wage. States such as California and New York have set legislation to raise the minimum wage to as high as $15 per hour by 2020, and Massachusetts and Washington are currently tied for having the highest minimum wage at $11 per hour. It makes sense that as the cost of living increases, the minimum wage would rise to reflect that.

Would you believe, then, that since 1996 the minimum wage for tipped workers has been set at $2.13 per hour?

Crunching the numbers

In case you’re too lazy to do the math, I’ve taken the initiative to present you with some figures. (And if you’re insecure about your mathematical skills, then let me assure you that I had to use a calculator). The federal minimum for tipped workers is $5.12 per hour less than untipped workers. Working 40 hours per week, untipped workers making minimum wage would make roughly $15,000 annually.

Tipped workers, based on hourly wages alone, would make less than $4,500 annually.

I mean, maybe it’s just me, but that seems a little unbalanced now, doesn’t it?

A hard day’s work

Now, in all fairness, these figures are purely based on hourly wages. At high-end establishments, especially, the tips can be quite good and more than make up for the significant wage gap.

But at less-expensive establishments, that wage gap can most assuredly be felt among the workers. If the establishment isn’t busy, or even if too many parties forget or decline to leave a tip, servers could potentially be walking away from an 8-hour workday having barely made $20.

If too many parties forget or decline to leave a tip, servers could potentially be walking away from an 8-hour workday having barely made $20.Click To Tweet

This example may be a bit extreme, but it is certainly within the realm of plausibility.

Who’s in the fight?

Restaurant Opportunities Centers United launched a campaign in 2013 to bring about legislation that would abandon the two-tiered wage system. Currently, there are only seven states that have such legislation in place, with Maine voting to become the eighth last year. Though the group is currently planning a major push in several states to move legislation this month, activists are worried progress may face major challenges over the next four years, largely due to President Trump’s nomination of Andrew Puzder as Labor Secretary.

Puzder, the CEO of CKE Restaurants – parent company of Hardee’s and Carl’s Jr.- has been an outspoken critic of raising the minimum wage.

The group also faces strong opposition in the National Restaurant Association, whose shared initials with another, often vilified association we will not discuss.

The opposition

The National Restaurant Association argues that an increase in wages would lead to an increase in food prices, directly leading to a decrease in both jobs and tips. They also argue that tipped workers are already among the highest paid workers in restaurants, so an increase in wages would be unnecessary. This line of thinking, of course, fails to include the idea that the amount servers are tipped are often enough based upon things that are out of their control.

You know, things like sex, race, age, physical attractiveness, etc.

It’s about to get real

In closing, there is an argument to be made for and against a two-tiered minimum wage. Certainly, there are many servers throughout the country getting paid an hourly rate that is significantly less than that of untipped minimum wage, and thriving due to high-tipping patrons. However, there are just as many workers, if not more, that are struggling to make ends meet at $2.13 per hour, plus a couple bucks in tips.

The restaurant industry has changed significantly over the past 20 years. Shouldn’t wages have as well?

#MinimumWage

Andrew Clausen is a Staff Writer at The American Genius and when he's not deep diving into technology and business news for you, he is a poet, enjoys rock climbing, monster movies, and spending time with his notoriously naughty cat.

Tech News

An industry first: IBM launches quantum developer certification program

(TECH NEWS) Developers with quantum computing skills can now prove they’ve mastered the subject with IBM’s first-ever Quantum Developer Certification.

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Quantum developer looking out of the window with a three monitor setup open to various coding programs.

Last week, IBM announced its first-ever developer certification for programming quantum computers, which is also the quantum industry’s first.

“Our team is extremely proud to be able to offer the first-ever quantum developer certification,” a company blog post read. “We hope its availability will provide a valuable learning path for developers and stakeholders looking to prepare themselves for quantum computing in the future.”

The IBM Quantum Developer Certification focuses on IBM’s software tools, specifically Qiskit, their open-source software development kit for quantum computing. Launched in 2017, Qiskit already has over 600,000 installs. And, it’s being used by developers to develop apps, improve code, and participate in hackathons and summer schools.

While the Quantum Developer Certification is the only quantum certification IBM offers now, it won’t be the last. IBM says it is “the first of several in a series of certifications.” This is part of the company’s quantum development roadmap to build a “diverse, global, cloud-based ecosystem of developers who can bring quantum computing skills to their own communities and industries.”

Offered through the Pearson VUE platform, the Quantum Developer Certification exam is 60 questions long. The exam will test a developer’s competency in the fundamentals of quantum computing concepts. Also, it will examine if a person can use Qiskit SDK from the Python programming language to “create and execute quantum computing programs on IBM quantum computers and simulators.”

This certification is exciting for the quantum community because it will officially demonstrate a person’s mastery of quantum computing. And, for the most part, I think most of us can agree that certifying your skills looks good on resumes, and it shows employers you’re serious about your career. However, getting one can be costly. Currently, IBM doesn’t have any scholarships in place, but they say they are working on rolling one out to those who are interested in getting certified.

Along with the certification, IBM is also supporting educators to prepare the future quantum workforce. They are giving educators access to IBM Quantum tools through their Quantum Educators Program and semester-long quantum computing course, Introduction to Quantum Computing and Quantum Hardware, and its free Qiskit digital textbook.

According to a report, quantum computing is predicted to become a $65 billion industry by 2030, and IBM wants to help companies “get their workforce quantum ready” for when it does.

“With our IBM Quantum Developer Certification, IBM Quantum is offering a path for people with all development backgrounds to earn a certification in programming with Qiskit, allowing them to leverage their quantum coding skills into a potential opportunity in this exciting new workforce,” the company blog post read.

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Facebook is cracking down on Groups, here’s what you should know

(SOCIAL MEDIA) Facebook will be holding Facebook Groups who break the terms of service accountable with stricter punishments.

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Facebook Groups open on laptop in front of business woman dressed in white blouse.

In light of the capitol riots—and an increase in things like hate speech and vaccine conspiracies in the days leading up to them—Facebook will be holding Facebook Groups accountable in the days to come.

Facebook users have always had some degree of moderation, but much of that accountability has been contingent on others reporting errant behavior, often necessitating multiple reports across the board before resulting in some kind of action from the social media platform. This new initiative will put the magnifying glass over groups in general, making it harder for them to contain or endorse content that violates Facebook’s terms of use.

Penalties for breaking those terms will vary, but may include anything from restrictions to immediate removal from the platform depending on how “egregious” the offense is. Repeat offenders will eventually be removed.

Those restrictions aren’t exactly opaque, either. Facebook’s VP of engineering, Tom Alison, made the platform’s new priorities clear in a recent blog post: “Groups and members that violate our rules should have reduced privileges and reach, with restrictions getting more severe as they accrue more violations, until we remove them completely.”

This isn’t the first time that Facebook has addresses issues with their Groups system. They stopped recommending political groups to users outside of those communities back in November—something they said would not change after the election—and their push to show people who aren’t in Groups content from ones that might be interesting to them seems to be slowing.

In fact, those recommendations will be a factor in taking away power from Groups who break the guidelines. Offending Groups won’t necessarily show up in people’s recommendations—or they will show up far lower than other Groups—thus decreasing the number of people who can access them.

Facebook’s motive here is pretty clear. The social media platform has been criticized heavily in the past for everything from being lenient on hate speech to influencing political outcomes, and while it’s easy to deliberate the validity of some of those claims, it’s much harder to ignore the fact that the amount of harmful content on Facebook is debilitating—something against which they seem to be taking a firm stance with this new directive.

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Tech News

Internet of Things and deep learning: How your devices are getting smarter

(TECH NEWS) The latest neural network from Massachusetts Institute of Technology shows a great bound forward for deep learning and the “Internet of Things.”

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Woman using smart phone to control other devices in home, connected to deep learning networks

The deep learning that modifies your social media and gives you Google search results is coming to your thermostat.

Researchers at the Massachusetts Institute of Technology (MIT) have developed a deep learning system of neural networks that can be used in the “Internet of Things” (IoT). Named MCUNet, the system designs small neural networks that allow for previously unseen speed and accuracy for deep learning on IoT devices. Benefits of the system include energy savings and improved data security for devices.

Created in the early 1980s, the IoT is essentially a large group of everyday household objects that have become increasingly connected through the internet. They include smart fridges, wearable heart monitors, thermostats, and other “smart” devices. These gadgets run on microcontrollers, or computer chips with no processing system, that have very little processing power and memory. This has traditionally made it hard for deep learning to occur on IoT devices.

“How do we deploy neural nets directly on these tiny devices? It’s a new research area that’s getting very hot,” said Song Han, Assistant Professor of Computer Science at MIT who is a part of the project, “Companies like Google and ARM are all working in this direction.”

In order to achieve deep learning for IoT connected machines, Han’s group designed two specific components. The first is TinyEngine, an inference engine that directs resource management similar to an operating system would. The other is Tiny NAS, a neural architecture search algorithm. For those not well-versed in such technical terms, think of these things like a mini Windows 10 and machine learning for that smart fridge you own.

The results of these new components are promising. According to Han, MCUNet could become the new industry standard, stating that “It has huge potential.” He envisions the system has one that could help smartwatches not just monitor heartbeat and blood pressure but help analyze and explain to users what that means. It could also lead to making IoT devices far more secure than they are currently.

“A key advantage is preserving privacy,” says Han. “You don’t need to transmit the data to the cloud.”

It will still be a while until we see smart devices with deep learning capabilities, but it is all but inevitable at this point—the future we’ve all heard about is definitely on the horizon.

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