South Dakota follows federal minimum wage guidelines. The federal minimum wage is $7.25, but the tipped minimum wage is even lower. It has stood at $2.13 for the last 23 years. In 1991 it was pegged at 50% of the federal minimum wage. In 1996 it was officially depegged from the minimum wage and has remained frozen ever since. Including tips, tipped workers in South Dakota earn a median wage of only $7.95 equivalent to $16,536 for a full-time year-round employee. However, tipped workers generally are allowed part-time schedules that vary by season. Seven states have eliminated the tipped minimum wage in those states tipped workers receive the full minimum wage.

The Rising American Electorate refers to the demographic groups that are growing the most rapidly, historically with lower voter participation rates, but whose growing civic engagement has been crucial in tipping the scales in recent elections. Tipped workers are primarily women, over 20% are moms, and although many are married, one-third of these are single moms. Although the median age for tipped workers is 29, half of them are younger. And they are racially diverse, overrepresented by Latinos, Asians, and African Americans compared to the broader workforce. They are also a highly educated group. Tipped workers are a snapshot of the RAE.

TIPPED WORKERS AND THE RISING AMERICAN ELECTORATE

THE STATE OF TIPPED WORKERS

In South Dakota there are nearly 13,000 tipped workers, and 63% of these work in the restaurant industry. The restaurant industry employs nearly 10% of the workforce and is one of the fastest growing sectors of the US economy. Unfortunately, the restaurant industry offers several of South Dakotas lowest paid jobs. Six of the ten lowest paid occupations are in the restaurant industry, and three of these are tipped occupations.

3 LOWEST PAIDTIPPED OCCUPATIONS

TIPPED MINIMUM WAGE

$2.13MINIMUM WAGE

$7.25MEDIAN WAGE FOR TIPPED WORKERSINCLUDING TIPS

$7.95

GENDER

76% 24%

TIPPED WORKERS WHOWORK IN RESTAURANTS

63%

Restaurant Opportunities Centers United

www.rocunited.org

BUSSERS, RUNNERS, AND BARTENDER ASSISTANTS

SERVERS

COUNTER ATTENDANTS

S O U T H D A K O TA

In states with a tipped minimum wage of $2.13, the poverty rates for workers of color is nearly double that of the seven states without a tipped minimum wage, with one in four living in poverty. WHITE PEOPLE OF COLOR ALL

POVERTY RATES IN $2.13 STATES 16% 25% 20%

POVERTY RATES IN STATES WITH NO TIP CREDIT 13% 14% 14%

TIPPED WORKERS AND THE RISING AMERICAN ELECTORATE

White 85%Latino 7%Other 7% Asian 2%Black 1%