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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

Microsoft’s latest HUGE investment: Self-driving car technologies

(TECH NEWS) Microsoft invests in self-driving car technology by joining other investors in a combined equity investment of $2 billion.

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Cars driving on city highway, including more than one self-driving car in the future.

Microsoft has put its money into self-driving car technology. The tech giant has partnered with General Motors and Cruise, GM’s majority-owned driverless car startup, to “accelerate the
commercialization of self-driving vehicles.”

“Our mission to bring safer, better, and more affordable transportation to everyone isn’t just a tech race – it’s also a trust race,” said Cruise CEO Dan Ammann in a press release. “Microsoft, as the gold standard in the trustworthy democratization of technology, will be a force multiplier for us as we commercialize our fleet of self-driving, all-electric, shared vehicles.”

Along with Honda and other institutional investors, the companies are investing a combined $2 billion into the autonomous car company. This new funding round brings Cruise to a post-money valuation of $30 billion.

The long-term strategic partnership between the companies will be a collaborative one and beneficial for both. To roll out its fleet of self-driving vehicles, Cruise will leverage Microsoft’s cloud and edge computing platform, Azure.

In turn, as GM’s and Cruise’s preferred cloud provider, Microsoft will use the car company’s “industry expertise to enhance its customer-driven product innovation and serve transportation companies across the globe through continued investment in Azure.”

Besides helping bring the self-driving technology out to the market quicker, the companies will also work together on other digitization initiatives. For instance, they will collaborate on artificial intelligence and machine learning capabilities. And, explore opportunities to streamline operations and increase productivity.

“Advances in digital technology are redefining every aspect of our work and life, including how we move people and goods,” said Microsoft CEO Satya Nadella. “As Cruise and GM’s preferred
cloud, we will apply the power of Azure to help them scale and make autonomous transportation mainstream.”

Cruise first announced its self-driving car service a year ago, but when it will be deployed isn’t certain yet. With Microsoft as a partner, deploying those cars will help speed things up.

“Microsoft is a great addition to the team as we drive toward a future world of zero crashes, zero emissions, and zero congestion,” said GM Chairman and CEO Mary Barra. “Microsoft will help us accelerate the commercialization of Cruise’s all-electric, self-driving vehicles and help GM realize even more benefits from cloud computing as we launch 30 new electric vehicles globally by 2025 and create new businesses and services to drive growth.”

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Tech News

Wow! This synthetic cornea gave a legally blind man his vision back!

(TECH NEWS) Another instance of “technology is amazing:” this minimally invasive eye implant has opened new doors for sight restoration surgeries for the legally blind.

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Blurry city with a single glass piece held in the middle with a clear view.

After being the first patient to receive a cutting-edge cornea implant, a legally blind 78-year-old man can see again. Directly after his surgery, the patient was able to recognize his family members and read an eye chart. The KPro implant comes from the company CorNeat.

KPro is the first implant that can be directly integrated into the eye wall, replacing damaged or deformed corneas with no donor tissue. The clear layer that protects the front portion of the eye is called the corona. The corona is susceptible to degeneration or scarring, as well as a number of diseases such as keratopathy, keratoconus and pseudophakia bullous.

While artificial cornea implants already exist, the surgeries are complex and typically only used as a last resort when transplants or cornea ring implants don’t work. That is perhaps what makes the CorNeat transplants so remarkable – it’s a simple procedure that’s minimally invasive.

Additionally, KPro uses a biomimetic material that “stimulates cellular proliferation, leading to progressive tissue integration”. Not only can these implants give you your sight back instantly, but they also can help the natural tissue in your eyes to grow back and integrate. Now, THIS is cool stuff.

CorNeat said that ten more patients in Israel are approved for trials, as well as two in Canada. Six others are in the approval process in France, U.S., and the Netherlands. Professor Irit Bahar of CorNeat stated that he believes this project will ultimately impact millions of people’s lives. Only time will tell.

This advancement in biotech comes at a time where many Americans are uninsured and at a higher risk for health ailments due to the coronavirus pandemic and subsequent effects. At its best, CorNeat’s KPro offers some hope – while COVID has brought many industries to their knees, advancements in medical technology seem to persist.

If the results of the implants continue to stay as promising as they are now, who knows – maybe we’ll all be receiving cornea implants as a normal part of health upkeep in the not-so-distant future. I know I’ll be first in line.

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The top 10 languages you can know as a programmer

(TECH NEWS) Considering a career as a developer or programmer? You’re not alone. Here’s top 10 programming languages to enhance or start your career.

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Two female programmers at a laptop working on a programming screen.

The COVID economy has thousands of Americans reconsidering their career paths – with so many jobs dissolving due to various reasons (i.e., automation, a decrease in full-time creative positions), it’s no wonder why scores of professionals are seeking to reskill ASAP.

If this sounds like you, look no further; have you ever considered the lucrative career of computer programming?

Programmers on average make a salary of $89,590 a year. And better yet, coding jobs might never become obsolete. The trick is to know exactly what you want to do – different coding languages best serve specific purposes. So, which one should you learn first?

Top ten languages for new developers:

  1. Python – Learn Python if you’re interested in data analysis, machine learning, scripting, web development and Internet of Things (it’s the future!). Python is also the easiest language to learn, so give it a go!
  2. JavaScript – JavaScript is for you if you want a career in making websites interactive.
  3. The Go Programming Language – You can learn to build simple, reliable, and efficient software.
  4. Java – Want to work on computer programs, games, apps and web applications? What about Internet of Things and robots? Learn Java to tap into these fields. Keep in mind, Java is considered difficult for novice programmers.
  5. C# – C# is great for websites, web applications, games, and apps – especially Windows apps. It’s also perfect for Machine Learning and Artificial Intelligence.
  6. PHP – Want to get your hands dirty doing back-end website programming? PHP is the language for you.
  7. C++ – For programming apps, games and web browsers, C++ is the language you’ll need to learn. Though it’s notoriously tough to grasp, knowing this language could be the competitive edge you need to set you apart from the pool of programmers.
  8. C – C will prepare you for operating systems, compilers and databases.
  9. R – The world is always in need of those who conduct data and statistical analyses – check out R to dive in.
  10. Swift – For apps and software for Apple devices, check out Swift.

My advice? Figure out exactly it is you want to do in your new career as a programmer. Set your goal. Then, after you’re sure what direction you want to go in, see which programming language best suits your needs.

Get proficient at one language to start and become top-notch at it. Then, you can expand your rolodex to include multiple languages and grow your abilities as a programmer.

Good luck!

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