Money Matters - One Fair Wage: Gender Pay Gap

As Women’s History Month recently came to a close, One Fair Wage is reflecting on the progress made and the work still ahead to achieve true economic equality for women across the United States. Despite decades of advocacy, women continue to face a persistent gender pay gap, earning approximately 83 cents for every dollar earned by white, non-Hispanic men working full-time, year-round.

 

That gap is even more pronounced in the restaurant industry, where the majority of workers are women and where a two-tiered wage system continues to suppress earnings. According to One Fair Wage’s recent report, “Still Waiting for Equal Pay,” women in tipped restaurant jobs earn just 82 cents for every dollar earned by men in the same industry, with the federal subminimum wage of $2.13 an hour serving as a key driver of this inequality.

 

The restaurant industry remains one of the clearest examples of how structural policies perpetuate the gender pay gap. Tipped workers, who are predominantly women, are forced to rely on tips for the majority of their income, leaving their wages unstable and often shaped by bias, discrimination, and inconsistent demand.

 

Within this broader gender divide, the disparities are even more severe for women of color. The report finds that Black women tipped workers earn just 63 cents for every dollar earned by white men in the same industry, underscoring how race and gender intersect to deepen economic inequality.

 

As Women’s History Month concludes, One Fair Wage is highlighting key findings from its report, “Still Waiting For Equal Pay,” which demonstrate how the subminimum wage continues to drive inequality:

 

Key Findings from One Fair Wage Report: Still Waiting For Equal Pay

 

• Gender Pay Gap in Tipped Work: Women tipped workers earn just 82 cents for every dollar earned by men, reflecting a persistent and systemic gender wage gap within the industry.
• Subminimum Wage as a Structural Driver: The $2.13 federal tipped wage suppresses earnings and forces workers to rely on tips, making income dependent on customer bias and inconsistent demand.
• Disproportionate Impact on Women of Color: Black women tipped workers earn just 63 cents on the dollar compared to white men, facing the steepest pay disparities in the industry.
• Economic Instability and Workforce Turnover: Low base wages and declining tips are pushing many women out of the restaurant industry, even as they express a desire to stay if they could earn a stable, livable wage.
• Harassment and Workplace Vulnerability: Women in tipped positions report high rates of sexual harassment, driven by their dependence on tips and pressure to tolerate inappropriate behavior to earn income.

 

Historical Context

The subminimum wage for tipped workers is rooted in a pay structure established to deny Black women any wage at all. During the Reconstruction era, restaurant owners who did not want to pay newly freed slaves justified exploiting Black women by forcing them to live off tips rather than earn a base wage. This discriminatory practice continues to harm women workers today, maintaining a two-tiered system that disproportionately impacts women and women of color.

 

Call to Action

As Women’s History Month comes to a close, advocates say the path forward is clear: achieving true gender pay equity requires structural change. Across the country, a growing national movement is demanding a Living Wage for All, with active campaigns in states and cities including Washington, DC, Los Angeles, Alameda County, Michigan, New York, and Chicago.

 

These efforts are calling for wage floors of at least $25 per hour and up to $30 in higher-cost areas, reflecting what it actually takes to meet the cost of living in today’s economy. Nearly half of U.S. workers still earn less than $25 per hour, even as that is now the minimum needed to cover basic needs in most parts of the country.

 

With more than 100 labor, civil rights, and community organizations united in the Living Wage for All coalition, this represents the largest coordinated national effort to raise wages in the country today. Organizers say the demand is clear: achieving pay equity for women requires ending the subminimum wage, raising wages across the board, and ensuring that every worker is paid a full, fair wage that reflects the true cost of living.

About One Fair Wage: One Fair Wage is a national organization of nearly 300,000 service workers, over 1000 restaurant employers, and dozens of organizations nationwide all working together to raise wages for all workers, end all subminimum wages in the United States, and improve working conditions in the service sector in particular. One Fair Wage policy would require all employers to pay the full minimum wage with fair, non-discriminatory tips on top, thus lifting millions of tipped and subminimum wage workers nationally out of poverty. For more information, visit www.onefairwage.org.