behind the kitchen door: low road jobs, high road opportunities in maine’s growing restaurant...

8/4/2019 Behind the Kitchen Door: Low Road Jobs, High Road Opportunities in Maines Growing Restaurant Industry

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Primar Research Support Proided B:

LaNsha Adams, Restaurant Opportunities Centers United

Editorial Support Proided B Nirupama Jaaraman

Desin b Christopher Chaput

Fundin Proided B:The Ford Foundation

Additional Fundin to Include Health Issues on the Sure Proided B:Maine Health Access Foundation

Februar 9, 2010

B the Restaurat Opportuities Ceter o Maie, Restaurat Opportuities CetersUite, a the Maie Restaurat Iustr Coalitio

The Restaurant Opportunities Center o Maine is a joint project o theRestaurant Opportunities Centers United and the Southern Maine Workers Center.

Behind the Kitchen Door:Low Road Jobs, High Road Opportunitiesin Maines Growing Restaurant Industry


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Primar Research Support Proided B:LaNsha Adams, Restaurant Opportunities Centers United

Editorial Support Proided B Nirupama Jaaraman

Desin b Christopher Chaput

Fundin Proided B:The Ford Foundation

Additional Fundin to Include Health Issues on the Sure Proided B:Maine Health Access Foundation

Februar 9, 2010


B the Restaurat Opportuities Ceter o Maie, Restaurat OpportuitiesCeters Uite, a the Maie Restaurat Iustr Coalitio

The Restaurant Opportunities Center o Maine is a joint project o theRestaurant Opportunities Centers United and the Southern Maine Workers Center.


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Eecutie Summar

i

Executive Summary

Behind the Kitchen Door: Low Road Jobs, High Road Opportunities in Maines Growing Restaurant Industrywas

conceived o and designed by the Maine Restaurant Industry Coalition - a broad gathering o academics, policyanalysts, worker advocates, worker organizers, unions, restaurant workers, and restaurant industry employers (seecomplete list on back cover). Tis report represents one o the most comprehensive research analyses o the restau-rant industry in Maine.

Te report uses data rom 525 worker surveys, ocus groups with 30 restaurant workers, and 30 one-hour interviewswith restaurant employers in Maine. Te results o this research are supplemented by analysis o industry and gov-ernment data, such as the Census, as well as a review o existing academic literature.

Our study was inspired by the need or examination and analysis o the overall health o the restaurant industry, whichis undamental to Maines economy and critical to the lives o thousands o restaurant workers and employers. Te res-taurant industry is an important and growing source o locally based jobs, and provides considerable opportunity or thedevelopment o successul businesses. It is thereore essential to make inormation about the industry rom the perspec-

tives o both workers and employers available to all stakeholders to ensure the industrys sustainable growth.

A Resiliet a Growig IustrMaine is home to a vibrant, resilient, and growing restaurant industry. Te industry includes close to 3,000 oodservice and drinking places that make signicant contributions to the states tourism, hospitality and entertainmentsectors, and to its economy as a whole.

Perhaps the industrys most important contribution to the states economy is the thousands o job opportunities andcareer options it provides. In 2009, the industry accounted or over $1.5 billion in sales. Since 1995, employmentgrowth in the ood services sector has outpaced that o the state overall. Restaurants employ more than 46,000

workers in the state 7.6% o the states total employment. Since ormal credentials are not a requirement or themajority o restaurant jobs, the industry provides employment opportunities to new immigrants, whose skills and

prior experience outside the United States may not be recognized by other employers, workers who have no ormalqualications, young people just starting out in the workorce.

Ma Ba Jobs, A Few Goo OesTere are two roads to protability in the Maine restaurant industry the high road and the low road. Restau-rant employers who take the high road are the source o the best jobs in the industry those that provide restaurant

workers with living wages, health benets, and advancement in the industry. aking the low road to protability, onthe other hand, creates low-wage jobs with long hours, ew benets and exposure to dangerous and oten-unlawul

workplace conditions. Many restaurant employers in Maine appear to be taking the low road, creating a predomi-nantly low-wage industry in which violations o employment and health and saety laws are commonplace.

While there are a ew good restaurant jobs in the restaurant industry, and opportunities to earn a living wage, the

majority are bad jobs, characterized by very low wages, ew benets, and limited opportunities or upward mobilityor increased income. According to the U.S. Bureau o Labor Statistics, the median hourly wage or restaurant work-ers in Maine is only $8.92 including tips, which means that hal o all Maine restaurant workers actually earn less.

In our own survey o restaurant workers, the vast majority (89.6%) reported that they do not have health insurancethrough their employers (see urther Chapter III: Workers Perspectives). Earnings in the restaurant industry havealso lagged behind that o the entire private sector. In terms o annual earnings, Maine restaurant workers on aver-age made only $14,207 including tips in 2008 compared to $35,624 or the total private sector.


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Eecutie Summar

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A majority o workers in our study reported overtime and minimum wage violations, lack o health and saetytraining and ailure to implement other health and saety measures in restaurant workplaces. Almost one quartero the workers surveyed in our study (24.9%) experienced overtime violations and 27.4% reported working othe clock without being paid.

The Social Costs o Low-Wage JobsOur research also reveals the hidden costs to customers and taxpayers o low-wage jobs and low road workplacepractices. Violations o employment and health and saety laws place customers at risk and endanger the public. Forexample, restaurant employers who violate labor laws are also more likely to violate health and saety standards inthe workplace such as ailing to provide health and saety training, or orcing workers to cut corners that harm thehealth and saety o customers (see urther Chapter VI: Te Social Cost o Low-Wage Jobs).

Te pervasiveness o accidents coupled with the act that so ew restaurant workers have health insurance can lead toescalating uncompensated care costs incurred by Maine hospitals. For example, more than one-third o all workers(36.4%) o surveyed workers reported that they or a amily member had visited the emergency room without beingable to pay or their treatment. Finally, low wages and lack o job security among restaurant workers lead to increasedreliance on social assistance programs resulting in an indirect subsidy to employers engaging in low road practicesand ewer such public resources available to all those in need. A key nding o our research is that whenever restau-rant workers and high road employers are hurt by low road practices, so is the rest o society.

The High Roa Is PossibleIt is possible to create good jobs while maintaining a successul business in the restaurant industry. Our interviews

with employers revealed that as long as there is an enduring commitment to do so, it is possible to run a successulrestaurant business while paying living wages, providing standard workplace benets, ensuring adequate levels ostang, providing necessary training, and creating career advancement opportunities. In act, 16.3% o the workers

we surveyed reported earning a living wage, and similar numbers reported receiving benets, thereby demonstratingboth the existence o good jobs and the potential o the industry to serve as a positive orce or job creation.

Our RecommeatiosTe Maine Restaurant Industry Coalition recommends the ollowing steps to address the workplace problems docu-mented in our study:

1. Level the playing feld by providing paid sick days and increasing the tipped minimum wage.Policymakers should require all employers to provide paid sick days to their employers, and raise theminimum wage or tipped workers to be closer to the minimum wage or all other workers. Te lack opaid sick days can result in real public health challenges or the entire state.

2. Promote model employer practices. Model employer practices should be publicized to provide much-needed guidance to other employers in the industry. Te vast majority o employers we interviewed agreedin theory that high road workplace practices were better. However, many did not appear to implementthem in practice.

3. Provide incentives or high road practices. Initiatives and incentives should be considered to assist andencourage employers to provide living wages, basic health care benets, and advancement opportunitiesto restaurant workers. Such initiatives could include rent and property tax incentives or employers whoimplement exceptional workplace practices, and subsidies and other measures that will make qualityhealth insurance aordable or those working in this industry

4. Labor, employment and health and saety standards should be strictly enorced. Employers should alsobe educated about their legal responsibilities towards their employees and provided necessary support toobserve their obligations to their workers and to the public. It is in the interest o both workers and thepublic at large that existing standards be observed and enorced.


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Eecutie Summar

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5. Promote opportunity, penalize discrimination. Policy makers should explore initiatives that encourageinternal promotion and discourage discrimination on the basis o race, gender, age, sexual orientation, andimmigration status in the restaurant industry.

6. Allow workers the right to organize. Barriers to organizing restaurant workers should be addressed. Te

public benets o unionization in this and other industries should be publicized as signicant benets toworkers and employers.

7. Support urther industry research. Further study and dialogue should be undertaken that includesthe perspectives o restaurant workers, employers, and decision-makers. Such dialogue can helpensure eective and sustainable solutions to the issues identied in our study especially race-baseddiscrimination, and the impacts o the industrys practices on health care and public program costs..

Te inormation collected here rom workers, employers, and industry experts is critical to ensuring that the Mainerestaurant industry truly shines both as an important contributor to the states job market and economy, and also asa source o well-being or Maine workers and communities.


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ExECUTIvE SUMMARy i

CHAPTER I: INTRODUCTION & METHODOLOgy 1

CHAPTER II: OvERvIEw OF THE MAINE RESTAURANT INDUSTRy 4

CHAPTER III: wORkERS PERSPECTIvES 12

CHAPTER Iv: EMPLOyERS PERSPECTIvES 29

CHAPTER v: HEALTH & SAFETy 40

CHAPTER vI: THE SOCIAL COST OF LOw-wAgE JOBS 48

CHAPTER vII: CONCLUSIONS & POLICy RECOMMENDATIONS 53

APPEndIx & EndnOTES 55

All contents Copriht 2010 Restaurant Opportunities Centers United (ROC-United)

Table o Cotets



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Chapter I

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C H A P T E R I

Introduction

Te Maine restaurant industry has enormous potential, both as an employer and as an engine of economicgrowth. Over the past twenty years, there has been tremendous expansion in the ood and beverage service sector,and despite the recent economic downturn, it continues to outpace other industries.1 Unlike many jobs in the manu-acturing sector, restaurant jobs cannot be outsourced or replaced by technology. For this reason, they are anticipatedto occupy an ever larger share o the states economy in the near uture.

aBOUT THIS STUDY

This study ws conceied nd desined by the Mine ResturntIndustry Coalition - a broad gathering of academics, policynlysts, worker doctes, nd others (see complete list onback cover). It represents one of the most comprehensive

reserch nlyses o the resturnt industry in Mine history.Data were collected from 525 worker surveys, 30 one-hour interviews with restaurant industry employers, andinteriews/ocus roups with 30 workers in Mine, collectedover a one-year period. The results of this primary researchre supplemented by nlysis o secondry industry dt nd reiew o existin cdemic literture.

This project was inspired by the need for examination andanalysis of the overall health of an industry increasinglyimportant to Maines economy and critical to the livesof thousands of restaurant workers and employers. Therestaurant industry is an important and growing source ofloclly bsed jobs nd proides considerble opportunity ordeelopment o successul businesses. It is thereore essentilto mke inormtion bout the industry rom the perspecties

o both workers nd employers ilble to ll stkeholders toensure the industrys sustinble rowth.

Te states restaurants are an important source o jobs particularly or women, new immigrants, and

young people just starting in the workorce.2 Tou-sands o Maine restaurant workers earn living wagesand receive health care benets. Te industry alsooers opportunities or aspiring entrepreneurs to

join the ranks o those who have ullled their dreamo opening a restaurant.

Most jobs in the industry, however, are character-ized by low wages - sometimes below poverty lev-el with ew benets such as health insurance and

vacation days, ew advancement opportunities, andexposure to unsae and illegal workplace conditions.

While some may dismiss these conditions by argu-ing that that the industry hires young, transitional

workers; according to the Census, almost 52% o allworkers in the industry are above the age o 25. Oursurvey and interview data, described in Chapter III:

Workers Perspectives, indicates that many o theseworkers remain in the industry or many years.

Our primary research, review o existing literature,and analysis o government and industry data reveal

that there are two roads to protability in Maines restaurant industry the high road and the low road. Restaurantemployers who take the high road are the source o the best jobs in the industry those that enable restaurant work-ers to support themselves and their amilies, remain healthy, and advance in the industry. aking the low road toprotability, on the other hand, creates low-wage jobs with long hours and ew benets. It ultimately harms workers,other restaurant employers, consumers, public health, and taxpayers.

Our research and existing government and industry statistics, indicate that the majority o employers in Maines res-taurant industry, like employers in other parts o the country, are employing low road workplace practices, contribut-

ing to the creation and perpetuation o a predominantly low-wage industry where ew workers enjoy basic workplacebenets and sae and healthy working conditions. Tese practices oten lead to violations o workers basic rights,as well as ederal and state wage and hour laws and health and saety regulations. As a result, as the restaurant in-dustry creates jobs, it has the potential to create jobs that allow workers to support their amilies, but oten insteadends up contributing to the prolieration o bad jobs in the current economy jobs that cannot sustain workers,their amilies, and our communities. Our worker surveys and interviews illustrate the impacts such bad jobs haveon peoples lives.

Our interviews with employers highlight many o the actors that drive them to take the low road to protability,oten against the principles o good business practice they espouse, as well as strategies employed by some restau-rant employers to overcome these actors. It is possible to achieve success in the restaurant business by pursuing the


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Chapter I

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high road, but employers ability to do so is undermined by pervasive use o low road workplace practices, creatingan unlevel playing eld. Our research also demonstrates the importance to public health and public coers oencouraging and supporting the majority o restaurant employers to improve practices.

In this report, we have brought together the perspectives o both high road and low road employers, the experi-

ences o workers, academic research, and government and industry data. We have created a unique and rich sourceo inormation on the areas restaurant industry, to help guide eorts to end discriminatory workplace practices, andpromote the high road business model to serve as a positive engine o economic growth in Maine.

TERMS USED IN THIS REPORT

Front o the House and Bac o the House reer to restaurant industr terms or the placement and unction o orers in arestaurant settin. Front o the house orers enerall represent those interactin ith customers in the ront o the restaurantincludin ait sta, bussers and runners. Bac o the house orers enerall reer to itchen sta includin ches, coos, oodpreparation sta, dishashers and cleaners. workers in these to dierent parts o the restaurant experience dramaticallydierent aes and orin conditions in Maine restaurants.

In this report, high road is used to denote employer practices that inole inesting in orkers by paying liing ages,proiding comprehensie benefts, opportunities or career adancement, and sae orkplace conditions as a means to

maximize productiit. The results o such hih road practices are oten reduced turnoer as ell as qualit ood and betterserice. Lo road reers to strateies that inole chronic understan, ailin to proide benets, pushin orers to cutcorners, and iolatin labor las, and health standards.

Fine Dining, Family Style or Franchise, and Quick Sere are three general sub-segments o the restaurant industryhich are presently untracked by goernment data, but hae been important in guiding our study and are most useul orunderstandin the arin practices and strateies used b indiidual businesses.

Fine dining, or what is commonly referred to as table-cloth restaurants;1.

Family-style restaurants, also described as casual dining, including both franchise or chain restaurants such as Olive2.Garden or Applebees, and smaller establishments, frequently neighborhood-based and/or ethnic restaurants;

Fast-food or quick-serve restaurants.3.


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C H A P T E R II

Overview of Maines Restaurant Industry


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Chapter II

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C H A P T E R II

Overview of Maines Restaurant Industry

A. A Sigicat a Growig IustrTe restaurant industry is increasingly signicant or Maine, especially as manuacturing jobs decline. Accord-ing to a report released by the Maine State Planning Ofce, the ood service industry has been one o Maineslargest employers since 2003, greatly contributing to the states overall economy.3 Te tourism industry, which in-cludes the restaurant industry, is now considered one o the states largest and astest-growing industries. In 2008,there were an estimated 15.4 million overnight visitors and 16.5 million day visitors to the state. 4 Overnight visi-tors to Maine spent an estimated $5.8 billion on goods and services during their trip, while day visitors spent $1.65billion in the state.5 In order to keep up with these demands, over 46,000 people in Maine are employed in nearly3,000 ood service and drinking places.6

Te restaurant industry contributes greatly to Maines tourism and hospitality sectors, and to the economy as a whole.

Te National Restaurant Association predicts that the industry is expected to keep growing, with a projected 11.4%job increase by 2019 to 6,800 new jobs.7

Although considerable skills are needed to work in this industry, no ormal credentials are generally required, mak-ing restaurants a viable source o employment or workers who have not had the opportunity to pursue ormal train-ing. Restaurant employment also serves as an important entry point into the job market or young people, women,and new immigrants to the United States, whose credentials and experience abroad, are oten not recognized byother employers.

B. How Ma Jobs?

TABLE 1: Emplomet i the Foo Serices Sector a Other Select Iustries, Maie, 2009

Iustr Emplomet ( i 1000s) Share o Total EmplometTotal Maie Emplomet 607.2 100%

Health Care a Social Assistace 99.8 16.4%

Leisure a Hospitalit 73.5 12.1%

Mauacturig 53.2 8.8%

Foo Serices a drikig Places 46.2 7.6%

Hospitals 31.9 5.3%

Costructio 27.9 4.6

Source: Mine Deprtment o Lbor Current Employment Sttistics, July 2009

Note: Industry Cteories re not mutully exclusie.

As indicated in able 1, the Food Services and Drinking Places sector provides over 46,000 jobs per year in Maine(hereater ood services sector). While the sectors contribution o 7.6% o the total payroll employment in the stateis less than that o other sectors; it has experienced less job loss in comparison to manuacturing and construction.In act, the ood services sector contributed to 63% o employment in the Leisure and Hospitality supersector. 8Since the beginning o the recession in December 2007, manuacturing and construction job losses have accountedor hal o the job loss in the entire state.9 Te ood services industry has been one o the largest and astest-growingsectors o the Maine economy, even during the current economic crisis. Te ood services sector currently employsmore people than a wide variety o both old and new economy industries such as construction, manuacturing, secu-


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Chapter II

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rities, and real estate. In act, an annual publication by the State o Maine Revenue Forecasting Committee reportsthat changes in employment by industry at the beginning o the recession refect long-term trends in Maine, with acontinual decline in manuacturing, construction and nancial services.10

Te restaurant industry has potential or providing low-wage workers with access to advancement to jobs that will

allow them to support their amilies. Tis is evidenced by the act that the industry is growing and that there aresome living wage jobs. From our survey data, 16.3% o all workers surveyed reported an hourly wage o $17.00 orhigher.

Since 1992, employment growth in the ood services sector has outpaced that o all others in the entire state. 11 Fig-ure 1 depicts employment growth in the ood services sector rom 1990 to 2008, compared to job growth overall inMaine. Even during the current economic crisis, the restaurant industry has not nearly suered the kind o job losslocally or nationally experienced by the economy as a whole. From January 2008 until December 2008, the econo-my as a whole experienced a 3.5% job loss, while the restaurant industry experienced only one-third o that loss, or1.16%.12 As o July 2009, the restaurant industry nationally is experiencing growth.

.9

1.2

1.5

Food Services & Drinking Places

Total Statewide Employment

2008

2007

2006

2005

2004

2003

2002

2001

2000

1999

1998

1997

1996

1995

1994

1993

1992

1991

1990

1990

=1.0

0

FIGURE 1: Job Growth i the Foo Serices Sector

a i Total Emplomet, Maie, 1990-2008

Source: Bureu o Lbor Sttistics, Current Employment Sttistics

C. What Ki o Restaurat?Per the Census, the ood services sector generally includes our industries: ull-service restaurants, limited-serviceeating places, special ood services and drinking places.13 Te restaurant industry is generally understood to includethe rst two o these categories; namely, ull-service restaurants and limited-service eating places. Although theCensus does not distinguish between dierent types o ull-service restaurants, we see both ne dining restaurants

and amily-style or ranchise restaurants alling within this category. Limited service restaurants are also knownas quick serve restaurants that do not oer waiter service.

Tus, in our study, we analyze three categories o restaurants introduced above: ne dining, amily-style or ran-chise, and quick service. Tese categories are important because we have ound that workplace practices are drivenby actors such as whether a restaurant is part o a national corporation or chain or is local ly-owned. While ast-oodenterprises are typically owned by national corporations, amily style and ranchise restaurants are split betweennational corporations and local owners, and ne dining restaurants are in most cases part o a restaurant group withmultiple establishments. Tese characteristics prooundly impact employers power, or lack thereo, to dene stan-dards and policies that aect their business and buying power, which is a key component o their competitivenessand protability in the industry.


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Chapter II

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d. Where are the Jobs?As indicated by the data contained in Figure 2, Cumberland, York, and Penobscot counties account or more thanhal o the states employment in restaurants, or 57% o all restaurant jobs. Cumberland alone accounts or almostone-third (30%) o all Maines restaurant jobs.

FIGURE 2. Emplomet b Cout i the Restaurat Iustr, Maie, 2007

Source: U.S. Bureu o the Census, County Business Ptterns, 2007

E. What Skills are Require?With the exception o ches and sommeliers (wine stewards), restaurant employers generally do not require workersto have educational degrees or vocational certication. Tis is not to say that restaurant workers do not have skills orthat restaurant work is not demanding. Back o the house workers, oten working in hot, cramped workspaces mustbe able to complete the tasks required to accurately ll orders in a timely and quality ashion in a high pressure en-

vironment. Front o house sta and other employees who interact with customers need strong interpersonal skills,time and task management skills, and a working knowledge o ood preparation and presentation.

Since the industry does not require ormal training, it is consequently an important source o jobs and income orlarge numbers o new workers who do not have ormal training or are new to the workorce. Te industry is also a


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Chapter II

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source o employment or women, youth, people o color and immigrants, particularly new immigrants whose prioreducation and experience abroad is oten not recognized by employers in the U.S.

F. Who are the Workers?

Maines restaurant industry is largely young and emale. Almost hal (48%) o all restaurant workers are under theage o 24, and a majority (61.6%) are women. Tough largely white, growing numbers o Asian and Latino work-ers refect the increasing presence o immigrants in Maines restaurant industry. Restaurant workers in Maine arealso diverse in educational background; almost one-third have attended some college (31.4%), and two-thirds havea high school degree (62.9%).

TABLE 2: A demographic Prole o Maie Restaurat Workers, 2000-2008(colum percetages)

RestauratWorkers

2008 Ol

2000 2008dierece

(2008-2000)All Maie

dierece (Res-taurat Workers

All Workers)

Geer Male 38.4 42.8 4.4 50.2 -7.4

Female 61.6 57.2 -4.4 49.8 7.4

Age 16-24 48.1 44.1 -4 14.6 29.5

25-44 34.7 35.2 0.5 37.2 -2

45-64 15.2 19.2 4 41.3 -22.1

65 and older 2.1 1.5 -0.6 6.9 -5.4

Race/Ethicit No n-Hispanic white 92.8 90.6 -2.2 96.3 -5.7

Non-Hispanic Blac 0.8 1.0 0.2 .7 0.3

Asian 2.1 3.2 1.1 .6 2.6

Hispanic/Latino an

race

2.1 3.4 1.3 .9 2.5

2 or more races andOther

2.3 1.9 -0.4 1.5 0.4

natiit Citizen b Birth 95.6 94.5 -1.1 97.1 -2.6

Forein Born 4.4 5.5 1.1 2.9 2.6

Worl area oBirth

United States 94.6 94.2 -0.4 96.0 -1.8

Latin America .4 .8 0.4 .3 0.5

Asia 2.3 3.4 1.1 .9 2.5

Europe 1.3 .5 -0.8 1.3 -0.8

Arica .3 1.0 0.7 .2 0.8

Other 1.0 1.0 0 1.4 -0.4years i US Born in the U.S. 94.3 94.2 -0.1 95.8 -1.6

0-5 1.4 1 -0.4 .4 0.6

6-10 0.7 .7 0 .4 0.3

11-15 1.1 1.2 0.1 .4 0.8

16-20 .8 .1 -0.7 .2 -0.1

21 or more 1.8 2.8 1 2.8 0


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Chapter II

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RestauratWorkers

2008 Ol

2000 2008dierece

(2008-2000)All Maie

dierece (Res-taurat Workers

All Workers)

Abilit to SpeakEglish

Speas er ell 62.0 58.3 -3.7 77.6 -19.3

Speas ell 23.1 32.1 9 16.7 15.4

Speas, but not ell 12.6 5.0 -7.6 4.1 0.9

Does not spea Enlish 2.3 4.7 2.4 1.7 3

Eucatio Less than Hih School 37.2 22.3 -14.9 8.7 13.6

Hih School Deree 31.5 33.8 2.3 33.8 0

Some Collee 24.8 35.6 10.8 33.8 1.8

Bachelors Deree andHiher

6.6 8.3 1.7 23.8 -15.5

Source: U.S. Bureu o the Census, Public Use Micro Smple rom US Census (2000) nd americn Community Surey (2008).

Note: Dierence is percente point dierence.

G. What o the Jobs Look Like?Jobs in the restaurant industry generally all into one o three categories, each corresponding to dierent levelso compensation, potential or mobility, access to training, workplace conditions, and other important indicatorso job quality:

1. Managers and supervisors, including ches

2. Front o the house positions

3. Back o the house positions

H. What o the Jobs Pa?Te data in able 3 show that the restaurant industry oers predominantly low-wage jobs. According to the Bu-reau o Labor statistics, the median hourly wage or all restaurant occupations in Maine is only $8.92 including tips.

While Maines restaurant industry is an important and growing source o income and employment, the jobs providelargely low earnings, raising concerns about the prolieration o low-wage jobs. Te restaurant industry contributesover 46,000 jobs to the statewide economy, but 78.82% o those jobs pay less than $10 per hour including tips.14


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Chapter II

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TABLE 3: Emplomet a Meia Wages or Foo Preparatio a SerigRelate Occupatios i Maie Statewie, 2008

Occupatio Emplomet shareMeia hourl

wage

All workers $8.92

Ches a hea cooks 0.95% $19.26

First-lie superisors/maagers o oo preparatio a serigworkers

7.76% $13.78

Cooks, ast oo 1.93% $8.43

Cooks, istitutio a caeteria 3.95% $11.80

Cooks, restaurat 8.48% $11.18

Cooks, short orer 1.89% $9.19

Cooks, all other 0.06% $13.71

Foo preparatio workers 10.80% $9.89

Barteers 5.13% $7.88

Combie oo preparatio a serig workers, icluig astoo

27.01% $8.27

Couter atteats, caeteria, oo cocessio, a coee shop 2.99% $8.47

Waiters a waitresses 19.09% $7.65

Foo serers, orestaurat 1.34% $9.42

diig room a caeteria atteats a barteer helpers 1.51% $8.42

dishwashers 4.48% $8.51

Hosts a hostesses, restaurat, louge, a coee shop 2.55% $9.08

Foo preparatio a serig relate workers, all other 0.08% $8.98

Uer $10.00 per hour 78.82%

Footnotes:(1) Estimates or detailed occupations do not sum to the totals because the totals include occupations not shonseparatel. Estimates do not include sel-emploed orers.(2) Annual aes hae been calculated b multiplin the hourl mean ae b 2080 hours; here an hourl meanae is not published the annual ae has been directl calculated rom OES reported sure data.(3) waes or the OES sure include base rate, cost-o-liin alloances, uaranteed pa, hazardous-dut pa, incen-tie pa includin commissions and production bonuses, tips, and on-call pa.

Source: U.S. Bureu o Lbor Sttistics, Occuptionl Employment Sttistics Surey or Mine Sttewide, 2008


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While the number o jobs in Maines restaurant industry has grown, restaurant wages over the past decade have not.As Figure 3 illustrates, average annual earnings in the industry are only 40% o that o the entire private sector inMaine. In 2008 dollars, 2001 private sector annual earnings averaged $35,312, but only $14,251 in the restaurant in-dustry. In 2008, private sector earnings were $35,624 a year, while earnings in the restaurant industry were $14,207over the same period.15 Tus, restaurant wages are less than hal o all private sector earnings and have declined overthe past decade, despite growth in the industry during the same period.

Total Private Sector

Restaurant Industry

AverageAnnualEarnings

0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

40,000

20082007200620052004200320022001

FIGURE 3: Aerage Aual Earigs B Iustr,Maie, 2002-2008

Note: Ernins re defted usin the CPI-U or Urbn Northest16

Source: Bureu o Lbor Sttistics, Qurterly Census o Employment nd Wes

In sum, while the Maine restaurant industry is an important and growing source o income and employment, earn-ings lag ar behind those o other private sector workers in the state. Te restaurant industry contributes over 46,000

jobs to the states economy,17 but 78.82% o those jobs pay less than $10 per hour. Overall, median restaurant workerwages are only 40 percent o Maine median wages, and currently there are no orces in the industry likely to begin toclose that gap ater many years o stagnation. And, given the industrys reliance on youth, women, and immigrants,it is already marginalized communities that occupy these low-wage jobs.


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C H A P T E R III

Workers Perspectives


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C H A P T E R III

Workers Perspectives

Te inormation summarized in this chapter represents a compilation o the results o 525 surveys and interviewsand ocus groups with 30 restaurant workers conducted between July 2008 to April 2009. By speaking directly withMaine restaurant workers, we gained more insight on the daily experiences o working in the states eateries. We

were also able to collect new data regarding the overall quality o their workplace experiences which is not refectedin existing statistics.

Where earnings are concerned, our research results are consistent with existing data the major-ity o restaurant workers we spoke with reported very low wages.

Most restaurant workers do not receive benets such as employer-provided health coverage, paidsick days, or vacation days.

Most restaurant workers we spoke with do not receive regular raises, promotions, or ongoing job

training.

More than hal the restaurant workers in our study are not paid overtime in contravention o gov-erning laws. We also received reports rom some workers that they were not being paid at all orany hours they worked beyond 40 despite routinely being required to do so.

A majority o workers reported health and saety hazards at their workplace, compounded by apervasive lack o health and saety training. In addition, on the job injuries were reported by manyo the workers we spoke with.

Workers earning low wages are less likely to receive benets, more likely to be exposed to poorhealth and saety conditions, less likely to be provided with job or health and saety training, andless likely to benet rom advancement opportunities. Conversely, workers earning living wages

are more likely to receive health insurance and benets, and work in saer environments.


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A. Itrouctio a MethoologWhile a majority o jobs are low-wage, low-road jobs in the restaurant industry, our survey research shows that thelow road is not the necessary path in this industry. At least one tenth o the workers we surveyed reported earningliving wages, and similar numbers reported enjoying comprehensive benets, opportunities or career advancement,

and better workplace conditions. While these workers are in the minority, their experiences refect the reality thatsome restaurant employers in the industry are pursuing the high road to protability. Te employer perspectivessummarized in the next chapter oer important insight as to how the conditions described in this chapter can beaddressed.

Tis study was motivated in part by the current dearth o qualitative data documenting the experiences o restau-rant workers in Maine. In an eort to pick up where ocial and industry statistics leave o, the Maine RestaurantIndustry Coalition designed a survey to capture detailed inormation regarding individual workers experiences be-

yond hour and wage data. Te survey instrument explored the availability o benets, working conditions, hiring andpromotion practices, the existence o job-specic training opportunities, employer discrimination, and the nature o

working conditions in the industry. Stratied random sampling methods were chosen to provide an accurate propor-tional representation o restaurant workers in Maine. Stratication was used as a sampling technique to ensure thatour sample was truly representative.18 o add to the rigor o the survey design and administration, we weighted thedata according to ront and back o the house in ull-service and limited-service restaurants to improve the precisiono our estimates. Weighting was used to compensate or over- or under-sampling and or disproportionate stratica-tion, and to ensure unbiased estimates o restaurant worker population totals.19

Te survey was administered rom June 2008 to April 2009 by sta, members, and volunteers rom the RestaurantOpportunities Center o Maine, a community-based organization with signicant contacts among restaurant work-ers and access to workplaces in the industry. A total o 525 surveys were conducted ace-to-ace with workers in thecounties o Cumberland, York, Lincoln, Hancock, Knox, Waldo, and Sagadahoc ater workers shits were com-pleted or during breaks. We sought to capture experiences in all types o restaurants, and surveyed workers in eacho the three main segments o the industry.20 Furthermore, our sampling rame, or set o participants rom whichthe sample was drawn, consisted only o workers employed in the industry. 21

Additionally, in order to obtain a holistic picture o the daily lives o individual restaurant workers, qualitative in-terviews were conducted with a total o 30 workers to gain in-depth inormation about the nature o working con-ditions. A general interview guide approach was used to conduct the one-on-one in person interviews. Te guide,developed by Dr. Manny Ness o Brooklyn College, contained standardized open-ended questions to ensure thatthe same general areas o inormation were collected rom each interviewee. Interviewers were trained how to usethe guide to conduct semi-structured, conversational interviews.22

B. EarigsOh, thats an issue. I havent had to deal with that but thats something that a lot o people or ex-ample, people who are hosting make an hourly wage and its not a very, it doesnt really, its not reallyliving a wage, anymore its not, and so or them they eel like they need to work all these extra hoursFemale, 6 years in the industry, Server

Our survey data are consistent with government and industry statistics demonstrating that restaurant work is pri-marily low-wage work.23

Tree percent (3%) o this group did not earn minimum wage even when tips were accounted or. Eighty-our(84%) percent o workers surveyed in our study reported earnings o less than $17.00 an hour, dened here as theliving wage or Maine. A living wage aords the earner and her or his amily the most basic costs o living withoutneed or government support or poverty programs24 and was calculated using the Economic Policy Institutes BasicFamily Budget Calculator (see Methodology box or wage group denitions).


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METHODOLOgY OR DEINITION O WagE gROUPS OR SURvEY DaTa aNaLYSIS:

Real aes ere determined b either calculatin orers aerae eel earnins includin tips and diidin b the aeraenumber o hours ored per ee or, or un-tipped orers, usin their hourl ae. wae roups ere then created usin theMaine State minimum ae at the time the sure as conducted ($7.25), the Department o Health and Human Serices (HHS)2008 ederal poer t line earnins or a amil o three o $17,600 per ear, and the Economic Polic Institutes (EPI) Basic FamilBudet Calculator. The olloin six actors ere chosen to calculate a liin ae: a) Housin, b) Food, c) Transportation, d)Healthcare, e) Taxes and ) Other basic necessities. Denition o ae roups and distribution o the sample population acrossroups can be seen in Table 4.

TABLE 4: Wages Eare b Maie Restaurat Workers

Less Tha Miimum Wage (< $7.25) 3%

Below Poert Lie ($7.25 - $8.45) 20.9%

Low Wage ($8.46 - $16.99) 59.7%

Liig Wage ($17 a higher) 16.3%

Source: Mine Resturnt Industry Colition surey dt

The earnings picture is slightly dierent or restaurantorers hen compared to other orers due to the actthat an exception to minimum age las is made ororers ho reularl receie tips. As a result, restaurantemployers in the State o Maine are permitted to paytipped orers minimum aes o $3.63 per hour, or 50%o the state minimum ae, as lon as tips mae up thedierence beteen $3.63 and the state minimum hourlae o $7.25 (at the time the sures ere conducted).I they do not, the employer must pay orkers thedierence.25 In Maine, hoeer, tipped orkers are not

guaranteed the ull minimum age or each indiidualhour or shit that they ork. Federal regulations alloemployers to aerage out their orkers tips oer a ullorkeek, complicating the tip tracking system andmain it ulnerable to emploment la iolations underthe Fair Labor Standards Act (FLSA). 26

40 o the orers sureed in our stud reported that theere born in another countr, and 3% o these orersreported that did not hae legal status to ork in theUnited States. Their actual proportion in the restaurantorkorce is likely een higher gien the possiblereluctance o orers to report their immiration statusor o the books employment. Our surey data romaround the country sho that immigrant orkers areparticularl ulnerable to exploitation because emploersare able to threaten rin and/or deportation i orerscomplain about orking conditions. Despite the legalimplications o the 1986 Immiration Reorm and ControlAct (IRCA),27 hich made it illegal to knoingly hire orrecruit immigrants ho do not possess laul orkauthorization and required employers to attest to theiremployees immigration status, many employers ithhom e spoe stated that undocumented immirantsare idely employed in the industry. various reportsand nes stories confrm that the restaurant industryproides an entry-point or undocumented orkers,particularly because o the opportunities to earn cashby the hour een hen earnings are belo ederaland state mandated minimum aes.28 Census data areunliel to capture the earnins o these orers.

youre main ou no the tipped minimum ae hich is extremel lo and I mean oure at the merc o eerone elsehos main tips I mean ou dont mae our on tips, oure relin on other people to tip ou out. Male, 5 ears in theindustr, Busser


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WHaT DOES IT MEaN TO LIvE ON a RESTaURaNT WORKERS EaRNINgS?

Accordin to the National Lo Income Housin Coalition (NLIHC), hile the Fair Maret Rent or a to-bedroom unit in Maineis $784, an ex tremel lo-income household (earnin $17,849 or 30% o the Area Median Income o $ 59,499) can aord monthlrent o no more than $446. 29

On aerage, a restaurant orker earning $10.50 per hour can aord monthly rent o no more than $546 or a to-bedroomunit. For orers to aord a Fair Maret leel o rent and utilities, ithout pain more than 30 % o their income on housin,their household must earn $2,613 monthl or $31,352 annuall. The tpical restaurant orer ould hae to or approximatel62 hours per ee in order to aord a to-bedroom unit at the areas Fair Maret rent. NLIHC determined that the Housinwae the amount a ull time orer must earn per hour in order to aord a to-bedroom unit at the areas Fair Maret rent in Maine is $15.07.

C. BeetsUm no sick days, no vacation days, I mean you could take time i you needed it but you had to ndsomeone to cover or ya. Male, 20 years in the industry, Dishwasher

For me, what kind o benets have I received? Honestly, like none. We dont have any insurance ben-ets, we dont have any sick days benets at all, i youre sick you just dont get paid. We dont haveinsurance we dont have vacations, you gotta work there or a, I dunno, a year or whatever, its onlylike a weeklong o paid vacation. Not having any benets has aected my amily because they, when

I get sick my amily has to pay or it, which is really, really expensive. So I just usually try to just suckit up, and like you said, and drink ylenols and drink tea or whatever. Male, 25 years in the in-dustry, Cook

Te majority o restaurant workers surveyed reported that they do not receive basic workplace benets. Te datain able 5 reveals that the vast majority o workers surveyed do not have health insurance through their employ-ers (89.6%), over 38.8% reported not having any type o health insurance coverage at all, and 36.4% went to theemergency room without being able to pay. An overwhelming majority reported that they do not get paid sick days

(89.2%) or paid vacation days (79%).

THE DIERENCE a UNION MaKES

Less than 1% o all restaurant orkers are unionized, hich might account or their perasiely lo ages. The Center orAmerican Proress reports that union members in Maine and across the countr earn sinicantl more than non-union orers,and are also sinicantl more liel to be coered b emploer-proided health insurance. For example, Maine orers that joina union ill earn 8.6% more or $1.54 more per hour than their non-union counterparts.30 Furthermore, the Maine Departmento Labors Center or wororce Research and Inormation reported in the March 2009 i ssue o Labor Maret Diest, that, basedon Januar 2009 data, Amon ull-time ae and salar orers, union members had median usual eel earnins o $ 886,hile those ho ere not represented b unions had eel earnins o $691.31 42.2% o orers in our sure sample statedthat the ould ant a union i the ne the could not be red or deported or joinin.

TABLE 5: Job a Health Beets Reporte b Maie Restaurat Workers

does ot receie health isurace through emploer 89.6%

do ot hae a health isurace coerage 38.8%

Goe to ER without beig able to pa 36.4%

do ot get pai sick as 89.2%

do ot get pai acatio as 79%

Hae worke whe sick 70.8%



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37% o workers surveyed with health insurance reported being covered through a amily member. Tirty three (33%)o workers with coverage reported receiving health insurance rom a state or ederal source. Five percent (5%) o

workers had to pay or health insurance out o pocket.

Um job securit is interestin because the needed people so badl but the erent pain them, so lie i I just called in sicor somethin the could hae just red me, Im not reall sure I thin a lot o people elt reall secure just because it as such asetch enironment. Male, 7 ears in the industr , Barista & Serer

Te majority o the workers we interviewed reported that they were unable to get unpaid time o when they neededit, particularly when they were sick. A ront o the house worker with over 20 years o experience in the industryexplained that i youre sick, thats a problem. Tey dont really allow you any sick days when youre sick and thats

just how it is. One server who has worked in the industry or 8 years reported you cant call out i youre sick. Tishappened a lot cause people lost their job cause they wouldnt come in when they were sick. But the thing is they

would never believe you were really sick. So they basically would re you i you were sick saying, You have to comein because I cant have people calling out sick, which isnt really good or customers. Despite the public health risks

associated with working while sick, over hal o the 525 workers surveyed reported working while sick (70.8%). Ad-ditional inormation on the impact o workers and taxpayers o the industry s lack o benets can be ound in ChapterVI: Te Social Cost o Low-Wage Jobs.

Youre s**t out o luck, like basically you hope that somebody might come in to cover you but i no one canlike you know they require a certain amount o people on the oor to do stu and i you cant get some-one to cover it then you have to be there which I think is terrible because you not only like you know inthe ood industry youre dealing with ood youre making things or people, like i youre sick youre mak-ing other people sick, youre going to get your co-workers sick and thats going to make everybody elsemiserable. Its really hard to like, i youre not eeling well to get your shits covered. Male, 2 yearsin the industry, Barista

d. dea E jobsTere is no job security. Tere are no raises, I get the tipped minimum wage and tips. Tere is denite-ly avoritism in terms o scheduling and hours. Female, 5 years in the industry, Host

Basically i you are hired or the back o the house, you stay at the back o the house. Teyll hire or peoplein the ront o the house, like they dont really, they dont promote back o the house to the ront o the house,they just keep the back o the house in the back o the house. Male, 20 years in the industry, Cook

Restaurant workers have ew opportunities to advance in the industry (see able 6). Regardless o occupation, restau-rant type, or length o service at a restaurant, workers reported that opportunities to increase their earnings throughseniority or by working their way up the industry ladder are ew and ar between. Fity-seven (56.9%) percent osurvey respondents reported that they do not receive raises regularly, and 60.2% o workers responded that they had

not been promoted since starting at their current place o employment. Tese trends held whether a worker remainedin the same place o employment or sought other opportunities in the restaurant industry 62.9% o workers sur-veyed said they had not moved up rom their last job when they took their current one. Moreover, 47.6% o workersreported that they do not receive the on-the-job training needed to be promoted.

TABLE 6: Raises a Promotios Reporte b Restaurat Workers

do ot receie regular raises 56.9%

Hae eer bee promote i curret job 60.2%

di ot moe up i positio rom last job to the curret job 62.9%

di ot receie ogoig job traiig eee to be promote rom emploer 47.6%



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I think with [my current employer], the barriers came with them being so cheap, that they dont wantto promote people cause when you promote someone you have to take all this extra training and that costsmoney cause youre not being paid to be on the oor to work, youre just being paid to train, its like athousand dollars to like train someone to do it um theyre not doing that with anyone because theyre so

cheap so i there is, i there is a slot that becomes available, a position that becomes available they dontpromote rom within anymore, they just bring people who are already supervisors in rom somewhereelse, it kinda sucks, really I think its preventing people rom asking because they dont want to pay peo-

ple or the training. Female, 6 years in the industry, Server

Te majority o restaurant workers are essentially trapped in low-wage jobs with long hours, ew benets, and ewadvancement opportunities. A recurring theme rom the interviews was a lack o movement between the ront andback o the house. As explained by a host who recently became a bartender ater 6 years in the industry, theres nopolicies to promotions. In general, there isnt much promotion, besides the glass ceiling o jobs to be a bartender.

Workers we spoke with reported having no choice but to leave their current employment in search o better jobs atother restaurants. Not only does the constant search or a better job deny workers job stability and economic securityor themselves and their amilies, but it also ends up costing employers in turnover-related costs. Tese two actorslead to a no-win scenario, and greatly threaten what could be a shared economic prosperity, as discussed in greaterdetail in the ollowing chapter.

E. Emplomet a Labor violatiosI wasnt paid thats why I let, um it was extremely conusing we went through a buncha dierentways to like account or our tips, um and how many like, the clock, we didnt have any ways to punchin like wrote down our hours long hand and then turned them in at the end o the week so obvious-ly there was a whole bunch o controversy about who was padding their hours and people who camein late and said they didnt, um so it was just a mess and so by the time we straightened it out our rst

paycheck was weeks late and by the time the second one just didnt come in on time I just quit becauseI want to be paid or the work I was doing obviously. Um but I know a lot o people had a lot o in-cidences where they stayed longer because they hoped things would get better but I just know it was a

nightmare. Female, 6 years in the industry, Host

As discussed in Sec tion B aboe, restaurant emploers in the State o Maine are permitted to pa aes o $3.63 per hour totipped orers. I tips do not brin the orer up to minimum ae, emploers are responsible or main up the dierence.The emploer, or each pa period in hich tips are reported, must eep a rit ten tip statement sined b the emploee anddated beore each pachec is receied on le.32 In pain $3.63, emploers rel on tips rom customers to pa the dierencebeteen orers tipped hourl rate o $3.63 and the leal minimum in the state. Hoeer, i tips do not brin the orer up tominimum ae, emploers are responsible or main up the di erence. while tip-poolin and tippin-out are commonpractices in most restaurants, it is unlaul or employers to take tips rom restaurant orkers. 94.3% o restaurant orkerssureed ere not aare o the correc t minimum hourl ae or tipped orers and 67.5% did not no that $7.25 as the stateminimum hourl ae at the time the sure as conducted. On Jul 24, 2009 the ederal hourl minimum ae increased rom$6.55 to $7.25. Also, on October 1, 2009, the minimum ae or the state o Maine increased rom $7.25 to $7.50. Clearl, morepublic education, or orers and emploers alie, is needed ith respect to oernin las in the restaurant industr.

With us, as servers, they pay I dont know i its properly, I never know i they pay you honestly, be-cause I have like in the past experience, the managers are the worst, they take advantage o the ban-quets every day. Tey pay themselves extra, extra money, and they pay us less money, but how do youknow? You dont know the bills, you dont know how much. So you just have to trust. And sometimes,in a place, they pay us hourly more than the regular server salary, but they dont give us gratuity. Sothey keep the gratuity. Female, 5 years in the industry, Server & Host


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TABLE 7: Emplomet Law violatios Reporte b Maie Restaurat Workers

Eperiece oertime wage iolatios 24.9%

Worke o the clock without pa 27.4%

Maagemet took share o tips 12%

Eperiece miimum wage iolatios 3%


As illustrated by able 7, several workers reported being paid less than minimum wage and receiving no overtimepay when they worked more than 40 hours per week, in violation o both ederal and state wage and hour laws.

wenty-ve (24.9%) o all workers surveyed told us they were not paid overtime or hours worked beyond the stan-dard 40-hour workweek.

Some workers we interviewed reported being paid a fat rate no matter how many hours they worked, a practice com-monly reerred to as shit pay. However, the Fair Labor and Standards Act mandates that i workers are scheduledor a shorter shit and they end up working more than eight hours or more than 40 hours per week, employers mustpay overtime.33 A worker with 10 years o experience in both ront and back o the house positions articulated a

practice that hal o all workers reported: Te working system up there or the scheduling part, they do, sometimesI am scheduled or a part-time position and sometimes I do work overtime. Basically you stay over an hour or twountil productions over and then youre ready to go home or you could wait unti l everyones done and you can go homethe next morning and you did a double shit actually. Another worker told us that working a second shit meant anincrease in tips, but not hourly pay. Experiences such as these illustrate that the industry are not closely regulatedand relies heavily on inormal employment arrangements.

and then all the sudden a month later they sent me letter that the check had bounced, cause theyclosed the account and they ended up switching over like a dierent name on their account, but theyclosed their account, where the check bounced, so thats when I had to go back to work and I was likewell they paid me all these dierent wages. Ten when I complain they give me cash. Female, 4

years in the industry, Host

I think you just have to speak up i youre not being paid properly, because they wont do anything un-less you bring it up to them, say hey, Im doing extra work and I need you to compensate it. Like amissed check or something, I talked to the manager and he came in and printed me the check. Male,18 months in the industry, Dishwasher

Tree percent (3%) o workers reported being paid less than minimum wage, in violation o the law. In the State oMaine, employers may pay as little as $3.63 an hour to tipped employees, as long as they receive enough in tips tomake up the dierence between the tipped wage and the state minimum wage. I tips are insucient to bring work-ers up to the state minimum wage, however, employers are obliged to make up the dierence. Nevertheless, o the

workers we interviewed, several reported being paid no hourly wage at all and subsisting on tips alone, oten averag-ing out to little more than a ew dollars per hour ar below the legal minimum. One server in the ne dining seg-ment o the industry reported, Tey pay at like $3 hourly and sometimes I dont have tips. You know, sometimes I

have to say I m sorry I cannot [work] because they pay $3 an hour.wenty-seven percent (27.4%) o the workers we surveyed reported working o the clock without pay. As ex-plained by one worker with 20 years o experience in ne dining establishments, At rst I thought it was prettygood. I worked as a barback and on the door I got tipped out by the bartender at the end o the night. It usuallyadded up to about 30 bucks at the end o the night depending on how busy it was that night and how much runningaround you did. But sometimes I would get there at around 4 and work as a doorman [making only tips]. Other

workers reported having to end their shit early and still work, otentimes receiving no pay. When asked why theyhad to end their shit early and still work, these workers explained they were too close to earning overtime, yet con-tinued to work because they needed the opportunity to earn tips. Even when earning tips, 12% o tipped workersreported that management was unlawully taking a share o their daily tips a severe burden to workers who are


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already being paid very low wages.

One o my co-workers worked two jobs and she started barbacking [at amily style restaurant]. Te bar-tenders are really snobby and she works ve hours and gets 10 bucks, so I dont know whats going on butthe managers not there and theyre like, Oh, we just give you whatever we want. Like, I dont know i

its a law that you have to share your tips or what. Male, 12 years in the industry, Server

Our survey data also revealed that employment law violations occurred in every segment o the industry. For ex-ample, despite popular perceptions o tip stealing occurring exclusively in smaller amily-style restaurants, 15.1% o

workers in ne dining reported that salaried managers took a portion o tips, along with 16.3% o workers in quickserve and 6.1% in amily-style establishments. When examining segment specic violations, however, it becomesevident that some violations are more prevalent in certain segments o the industry. For example, 24.9% o the gen-eral survey population reported that they experienced working more than 40-hours a week without overtime pay, but34.4% o workers in ne dining, 27.6% o workers in amily style and 17.5% o workers in quick service experiencedthis. Restaurant workers in ne dining (35.1%) and amily style (30.6%) establishments also experienced higherproportions o working o the clock without pay than all o the workers combined (27.4%).

F. Occupatioal Segregatio a discrimiatioTe nature and quality o restaurant work in the state o Maine diers depending on a number o actors, includingthe type o restaurant, its location, and the employer. It also depends on the type o job and the value the employerplaces on the work perormed. Our worker and employer data indicate that wages and working conditions also de-pend on a workers race, gender, age, and immigration status.

Despite the act that the majority o Maines population is white, the 2000 U.S. Census reported that there are morethan 3000 workers o color in the state working in the restaurant industry. Our research suggests that even in Maine,like many other American states with larger percentages o people o color, occupational segregation and discrimina-tion is evident in the restaurant industry. Tough a small percentage o the industry, people o color and immigrantsare disproportionately represented in low-wage jobs. While the public at large is generally most amiliar with directorms o discrimination, indirect discrimination which occurs when seemingly neutral policies have a dispropor-

tionate impact on a particular group is most prevalent, insidious, and dicult to remedy.Because workers experiences o discrimination were not the primary ocus o this study, the inormation presented inthis section provides only a glimpse into these issues. Further exploration o the maniestations, nuances, and impactso both direct and indirect orms o discrimination in the restaurant industry is needed. Te Maine Restaurant IndustryCoalition strongly encourages the industry, worker analysts, and advocates to pay greater attention to these issues.

SEGREGATION BY POSITION

I remember the ne dining restaurant they had all white people, and there was one black girl, wait-ress but she was or the amily dining but they usually werent any non whites in the ne dining, Idont know i that was on purpose, I just noticed that, uh gender yeah, male, emale, um the manag-

ers were all men, host to hostess I think they were always girls, back o the house you know we had theMexicans, we had the dishwashers, one lady baked bread, um line cooks were all, they were all guysactually, all white guys and yup guess thats it. I was the only girl in the kitchen. Female, 5 yearsin the kitchen, Line Cook

I think they are like Somalese people, well no, because they rom Somalia, but Muslims -- they are inthe back o the house, or some reasons, I imagine because they... but people rom many dierent nationsin there, and also with some kind o disabilities, and they work there [as well]. Female, 5 years inthe industry, Server & Host


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Jobs in the restaurant industry essentially all into one o three categories: ront o house workers, back o the houseworkers, and managerial and supervisory positions.

Our research indicates that workers positions within this hierarchy determine their earnings, benets, opportuni-ties or training and advancement, and working conditions. Front o the house workers generally earn higher wages

and have greater opportunities to increase their earnings through tips. As indicated by the data in able 8, 37.6%o all ront o the house workers reported a living wage (more than $17 per hour) compared to only 2.7% o back othe house workers. Additionally, back o the house workers are more highly concentrated in the poverty-level andlow-wage wage categories. Additionally, back o the house workers reported more requently than ront o the houseemployees that they had been injured on the job.

Tere are, o course, some dierences in wages and work quality among positions within each side o the house (seeable 8). For example, although both occupations would be classied as ront o the house positions, compensationand working conditions dier considerably between bussers and waiters. In the ront o the house, bartenders wesurveyed reported the highest median hourly wage o $18.03 per hour, with waiters and waitresses in our surveysample averaging $15.80 including tips, bussers $12.68, hostesses $10.35, and cashiers $10.50. In the back o thehouse, ches or cooks averaged $12 per hour, dishwashers $9.25 per hour and prep cooks $7.50 per hour. However,our analysis ound the starkest disparities between ront and back o the house positions. Te median hourly wagereported by ront o the house workers was $15.13, while back o the house workers averaged $10 per hour.

TABLE 8: diereces i Job Qualit b Restaurat Job Tpe

Frot o the house jobs Back o the house jobs

Wages

Less than minimum ae 5.6% 1.4%

Under poert line 4.1% 20.9%

Lo ae 52.8% 75.0%

Liin ae 37.6% 2.7%

Total 100% 100%

Workplace IjuriesHae been burned hile on the job 40.6% 76.1%

Hae been cut hile on the job 52% 70.8%

Hae come into contact ith toxic chemicals 29.3% 47.2%


In our survey sample, a slightly higher proportion o workers o color worked in the back o the house 44.7% oworkers o color we surveyed worked in the back, compared to 42.9% o white workers. In addition, only one o the71 people o color we surveyed worked as a bartender, the industrys highest paid hourly position, compared to 15 othe 433 white workers surveyed. Interestingly, o the 71 people o color we surveyed, only 7 o them reported earn-ing a living wage o $17 or more per hour, compared to 74 out o the 418 white workers we surveyed who reported

earning a living wage; clearly indicating that a higher concentration o people o color in the back o the house nega-tively impacts their earning potential.

Portuguese sta will be in the back, dishwashers, would be either like me, or like Mexicans, or PuertoRicans, black, dishwashing. Preps they would have all the, basically like, anywhere rom 20, 25, 30,

prep cooks, older people, they wont let younger people do any prep. Line cooks were basically like itsmixed; basically, gender its predominately male in the back o the house, like everywhere Ive worked.Like, Ive only worked in one kitchen where I saw one emale as a cook. But she basically didnt lastlong, it was just like give her the position oh, and then, give her a reason to let her go, you dont really

t the need. But back o the house is basically the boys house in the back, and the ront o the house is theemales house, in the ront. It is separated like all the restaurants Ive worked where, its like race, gen-


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der, ethnicity does play a role, even thought when you see those posters in the employee lounge that saysall this and that. Well, basically it says it on the billboard but they get the applications and the resumeswhere they call or interviews where they only hire or that ofce there, thing, they dont say well, okaywe want 2 emales, 2 white Americans, and two aliens or whatever immigrants and then they have

it where they just say na, back o the house guys there, ront o the house women, and managementwhite Americans, back o the house, management, I seen a couple o like immigrants, that were like su-pervisors, they wouldnt put them as manager cause the manager would be a white but they would giveyou all that responsibility as his job while he sits in the ofce and collects and reaps the benets o yall.It how is has been or me. Male, 20 years in the industry, Cook

SEGREGATION BY SEGMENT

While all restaurants are in the business o serving their guests a meal, actors such as ambience, type o service,and type o targeted patrons segment the industry into three categories which vary markedly with respect to wages,

working conditions, and workorce composition. In this report, we categorize those segments as ne dining or ta-blecloth, amily-style and ranchise, and quick-service or ast-ood.

Te industry has potential to provide living-wage jobs, particularly in the ne-dining segment o the industry. Fromour survey data, the most signicant dierence between the segments was wage. Fine-dining workers averaged$14.00 per hour, while workers in amily-style establishments averaged $13 per hour and workers in quick-serviceaveraged $9 per hour. Nine workers surveyed in Maines ne-dining restaurants reported earning more than $66,560annually, and three workers reported earning $100,000 annually. It is the $40 price point per meal at these estab-lishments, along with higher tips, that oers employment with substantially higher earnings than the other twosegments o the industry.

Our data indicate that race is also a mediating actor in gaining employment in particular segments. Tis is evidencedby the act that nearly hal (58.3%) o all Arican American survey respondents worked in the quick service segment,earning a median wage o $8.50 per hour, compared to 44% o whites working in the quick service segment.

G. Racial disparities i Wages & Workig CoitiosTe skills needed or them position you would have to start o in the bottom, i you are the ront man-ager then you need to have some background experience in managing and, pretty much thats it or the

ront, and or the back kitchens you need to start o rom scratch rst, too, which you have to be a kitch-en staer know how to do everything, you just go and relax. Tose who usually get those positions areusually the whites, cause thats how, its very dominated by whites, - Female, 9 months in the indus-try, Counterperson

As described above, the restaurant industry in the state o Maine is segregated by position and segment, and thissegregation occurs along racial lines. Workers o color reported lower median wages and higher rates o employmentlaw violations and lack o access to benets than white workers. Whites in our survey reported a median hourly wage

o $10.54, while workers o color reported a median wage o $9.91 per hour.

Neither Census and other oernment data nor our sure data can completel represent the realit o occupational sereationor restaurant orers b race, or a ariet o reasons. One reason that Census data has limitations ith reard to immirantpopulations is that immigrants are less likely to speak to goernment sureyors or reasons o language barriers and ear.Hoeer, Census data are also limited ith reard to non-immirant lo-income populations, hich are enerall undercountedor a plethora o reasons, includin lac o access to telephone and other means o communication, lac o stabilit o address,and more. Further research into ho discrimination based on race, ethnicit, and immiration status a ects Latino and AricanAmerican orers is clearl needed particularl ien that sereation is not obious to the sinle orer, and discriminationcan be subtle; these experiences do not appear to be adequatel addressed b current data.


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As indicated by able 11, workers below the age o 17 and above 45 are more highly concentrated in the quick servesegment than workers between the ages o 18 and 44. As described above, the quick serve segment provides muchlower wages than ne dining or amily-style restaurants. Tere is a clear preerence or younger workers (above theage o 18) to work in ne-dining restaurants, where the highest wages may be ound.

TABLE 11: Relatioship betwee Iustr Segmet a AgeFie diig Famil Stle Quick Sere Total

15 17 rs 10% 30% 60% 100%

18 24 rs 18% 35.1% 46.9% 100%

25 44 rs 25.3% 37.6% 37.1% 100%

45 64 rs 19% 33.3% 47.6% 100%

65+ rs 0% 50% 50% 100%


K. disparities i Wages & Workig Coitios Base o Immigratio StatusSeveral employers in our employer interviews discussed the growing immigrant population in the restaurant indus-try at length.

People say ah, good, immigrants, cheap labor they take advantage o, toying with people because olanguage barriers, moderately, lightly abusive to people, uh. Yeah I dont think its generally that bad,but theres glitches here and there. Owner, 12 years in the industry, Family Style

I would say that our applicant pool mirrors the marketplace. Were not going to attract that many minor-ities to work here. I interviewed an Arican-American last week. Weve had two Hispanic dishwasherswho were both very good I wish wed had more. Owner, 8 years in the industry, Family Style

Maines population increased by our percent (4%) between 1990 and 2000, and by 3.5% between 2000 and 2006,

bringing Maines total population to approximately 1.3 million. Between 2000 and 2006, 9.3% o the total popula-tion increase was directly attributable to immigrants.34 Despite the overwhelming majority o the population beingwhite and U.S.-born, recent population increases resulted in a large infux o immigrant workers into Maine, pre-pared to work or lower wages.35 While they remain a very small percentage o the total population and the restaurantindustry, immigrant workers in Maine are an important group to consider because they are a growing population,and because they are more vulnerable to exploitation due to language barriers, lack o inormation about their rights,and ear o detention or deportation. O the orty immigrant workers surveyed, only our reported earning a living

wage o $17 per hour. Immigrant restaurant workers in our sample reported higher rates o employment law viola-tions than U.S. born workers. Nearly one-third (31.9%) o immigrant workers worked hours o the clock withoutreceiving pay, 20.8% reported that management stole a portion o their tips, and 4.9% experienced minimum wage

violations a percentage rate that was double the rate o U.S. born workers. However, ederal law states that allworkers have the right to minimum wage and overtime protections, regardless o immigration status. Employers

also reported a preerence or U.S.-born workers, particularly in ront-o-the-house positions.We have Pedro rom El Salvador. Teres a language barrier there. He can speak proper Spanish buthe cant gure anything out. He just washes dishes on Friday and Saturday. Che/Manager, 10

years in the industry, Fine Dining

Immigrant workers also reported a higher rate o health and saety violations than U.S.-born workers. Seventeenpercent (17%) o all immigrant workers reported working in restaurants with guards missing on the cutting ma-chines, and 23.5% o immigrant workers reported re hazards in the restaurant a percentage rate that was doublethe rate o U.S. born workers.


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You nd that people who cant speak English arent, what I like to call, automatic. You know, theyresingle loaders, every time you have to show them again and again and again. And or us to have goodcustomer service with the high volume that were doing. We dont have time to do that. Manager, 5

years in the industry, Fine Dining

I mean I know that it helps our industry to have immigrant workers that come in and make less mon-ey than an American worker would. But I think on the backside, it costs us in what we spend in allsorts o stu. I mean, social services, ree health care, you know, so, I can denitely take a side on bothsides o it, I mean. I think there should be some sort o procedure to go through to get a job here. I you

go to New York or Chicago, there are so many places there that people are working without proper sta-tus. Owner, 3.5 years in the industry, Family Style

L. Seasoal WorkersDespite common perceptions o Maines restaurant workers as primarily seasonal employees, only 73 o the 525

workers we surveyed reported being seasonal, despite having surveyed in all our seasons o the year. Only 5 o theseworkers were not born in the U.S., meaning that 92.7% o all seasonal workers surveyed were U.S. born citizens

with more than one job. Te complexity o seasonality and restaurant workers is compounded by the act that thereare no state or ederal labor laws or dening temporary or seasonal employment status. Te number o temporaryand seasonal employees working in Maine can be estimated rom the Maine Department o Labor Bureau o Un-employment Benets database, which does not aggregate based on industry.

Our ndings indicate that the majority o restaurant workers are year-round, non-seasonal workers. Employmentlaw violations among seasonal workers are generally comparable to those reported by year-round workers; however,seasonal workers did report overtime violations at a higher rate (31.2% o seasonal workers compared to 25% o all

workers surveyed), and also reported tip misappropriation at higher rates (18.7% as opposed to 12% o all workers).

TABLE 12. Seasoal Workers Eperieces o Emplomet Law violatios

Seasoal Workers ( = 73) All Workers i Sure Sample ( = 525)

Worke o clock without pa 18.6% 27.4%Eperiece oertime iolatios 31.2% 24.9%

does ot make miimum wage 1.5% 3%

Maagemet took share o tips 18.7% 12%


Te average age o seasonal workers was 24, three years less than the average o the general survey population. Per-haps the most signicant dierence between seasonal workers and year-round workers was the length o time work-ers reported working in one restaurant. Nearly hal (45%) o all seasonal workers worked in the same restaurant orone year or less, compared to 32% o year-round workers.

M. A Career Iustr or MaAs described above, low road practices are pervasive throughout the restaurant industry. Poor working conditionsare not a temporary situation or these workers, since or many workers, the restaurant industry is a long-term career.

Te overwhelming majority o workers surveyed stayed in the restaurant in which they were working or more thanone year, with two years as the average time spent working in the same restaurant, and almost one-third (31%) o all

workers surveyed working in one restaurant or three years or more.

O course, the industry does experience high turnover, but our surveys and interviews indicate that the turnover islargely caused by workers seeking better wages, working conditions, and advancement opportunities within the res-taurant industry. We ound a relationship between workers that reported receiving promotions and the length o timethey stayed working in one restaurant. Sixty percent (59.9%) o workers who stayed in their restaurant or three or


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more years received a promotion, while only 36.8% o workers who worked between one and three years in the samerestaurant received a promotion. Tis indicates that many workers who do not receive promotions leave their jobs totry to nd others within the industry that provide better opportunities or mobility and higher wages.

O the 525 workers we surveyed, the vast majority reported working 40-hours per week (64.9%), year-round (85.8%),

or more than one year in one restaurant (65.9%). Most workers make a career out o the restaurant industry, andseveral workers explained that turnover rates are so high because they seek better jobs. One worker reported that

while she has worked all three segments o the industry (quick serve, amily style, and ne-dining) throughout thestate o Maine over 10 years in the industry, she continues seeking jobs in restaurants because what motivates [me]to stay at a restaurant is pretty much everything about it. o stay at a particular restaurant its your co-workers, itsmanagement, its the way that they treat you with respect or without respect. Te money, the clientele, you know

what I mean, is what motivates me; its the reputation o the place. A crumbling o all o this has made me leaverestaurants in the past. Another worker reported that what motivates her to stay in the industry is that Te moneycan be quick money, ast money, the dierent sorts o people, the education you can get working in really nicer res-taurants, the dierent quality o ood and learning and learning about wines; getting the benets o that either aVIP tour o some winery or things like that.

I am Sharon, I came rom Jamaica, here I as a securit uard at the airport. I came here in Decembero 2007. M rst stop in the US as in Alabama, orin or a DvD compan. when I rst ent there, Ihad man problems, the rst niht I sleep on the foor, in a shop, 11 o us. what the told us, in Jamaica,as that e ere onna come straiht into an apar tment, but that as not so. when e came to Alabama,e ere let stranded, so e hae to sleep in a shop or to das. we ere suppose to or lie 6 das aee, but e onl ored to. Ana, I hae our ids in Jamaica to support. The rst is 21, second oneis 17, third one is 13, the last one is 8. I dont see them or to ears no. we tal eer da on the phoneand on the computer, on the eb cam. I miss them a lot. They understand and kno that some day,hopeull next ear that the ill et to see me. Ana, I couldnt mae an mone to send them, and topay rent, so I had to leae Alabama. I got in touch ith this oman in Maine in March 2008. My frstimpression o Maine, all I could hear as it as cold and I couldnt manae it here. But hen I came to

Maine, I thouht I met some people, but I thouht the ere racists, but ater ettin to no them I hae the ron thinin.So I came to [a Maine hotel], that is here I started orin. I had a onderul time there, the sta as onderul, the salaras ood so I could send mone home to m amil. Some uests that came in, the a the loo at me or bein a blac person,I ured eerone ould be the same hich I had the ron impression. Ater a hile I realized that not eerone in Maine is a

racist, but I loe Maine. Thats h I am here until no. All o m riends ent aa to other states. I ent aa to Pennslania,but I came bac to Maine because I did not lie it there. what I lie about Maine? The people are er loin. People that I haecome across so ar, and Ie been here or almost to ears, there er loin. The mae me eel er elcome.

M orst experience as at a hotel in Ne Hampshire. I did not eel happ there, but I staed orin there. M superisorand me did not et alon. I alas eep on complainin that I did not et enouh hours. Then the transered me to the siarea here I hae to or in the sno and ice. I had to do it. I asnt ettin an hours, I asnt main an mone. So she mademe or at the si area, collectin and checin ticets. Im alas trin to adjust msel to situation because I am here toor and tae care o m amil. But hen I see somethin not oin riht, I hae to step on it. The ere racists. The ouldie the hite people more hours, then us. Suppose the or lie 7 das, e or lie 3 das. That as seasonal, and thenthe inter as oer, I came bac to Maine. what I lie about it, hat eeps me inspired. Its the people Eileen and Ric, therereall nice people. The motiate me to sta.

I didnt reall hae impressions o the United States beore I came here. I had riend that said it as ood to come here becauseo the dollar. I see people come here, here I lie in Jamaica. The reall mae it, the come bac rom the United States, thebu a house, the bu a car. when I came to Alabama, I didnt een mae $1000, not enouh to send home, so I no I neededto o somehere I could support m amil.


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C H A P T E R Iv

Employers Perspectives


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C H A P T E R Iv

Employers Perspectives

Our interviews with employers in Maines restaurant industry proved to be a rich source o inormation regarding theconstraints under which they operate, thus leading them to engage in the practices described by workers in Chap-ter III: Workers Perspectives - oten despite their best intentions and their expressed belie that restaurant workersare critical to their success. Our interviews

behind the kitchen door: low road jobs, high road opportunities in maine’s growing restaurant...

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