US tipped employees receive the 'subminimum wage' of $2.13, unchanged since 1991

The Fair Labor Standards Act established a minimum wage—but it didn't cover everyone

A 1966 amendment created the “tip credit,” which allowed restaurants to pay below minimum wage if tips compensated the difference. However, this federal tipped minimum wage has remained frozen at $2.13 per hour since 1991, whereas the regular minimum wage has increased multiple times since then.

Many states require higher direct wage amounts for tipped employees than the federal requirement

Employers of "tipped employees" are required to pay them $2.13 per hour in direct wages if that amount, combined with the tips, at least equals the federal minimum wage of $7.25. If the employee's tips combined with the employer's direct wages of at least $2.13 per hour do not equal the federal minimum hourly wage, the employer has to make up the difference. However, this differs from state to state. This interactive map shows what tipped workers make per hour in every state.

Tipped workers in ‘$2.13 states’ experience an estimated 18.5% poverty rates

In so-called “equal treatment states,” where tipped workers are subject to the normal federal minimum wage or higher rather than the tipped minimum wage, the poverty rate is 11.1%.

After emancipation, many slaves went from working for free to working for tips

In 1938, the New Deal established a minimum wage for one-fifth of the labor force, with many sectors—including service workers—not covered. Today, although the subminimum wage of $2.13 an hour is enforced, a large portion of those paychecks go to taxes like Social Security and Medicare.

Americans spend an average of nearly $500 per year on tipping at restaurants and bars

The habit runs contrary to economic rationality: Why pay more for a good or service you have already received when it isn’t mandatory? Researchers found that people tip, in part, to avoid the psychological pain of not fitting in.

In the 1920s, Prohibition helped cement tipping norms in the US

During Prohibition, restaurants lost significant revenue, given that they could no longer legally serve customers high-margin alcohol. As a result, many of these restaurants leaned more heavily on tips to ease the financial pressure of paying employees.

Minimum wage laws are a relatively new phenomenon in the US

Today, the federal minimum wage in the US is $7.25 per hour. But the country wasn’t founded with minimum wage laws in its DNA. The first federal minimum wage wasn’t set until 1938, when it was 25 cents per hour.

An animation of how the minimum wage changed every year from 1968 to 2018

In the United States, both the federal and state minimum wages have changed a lot over the years. See how—both in each state and at the federal level.

The US had roughly 1.6 million minimum wage workers as of 2021

Typically, minimum wage workers are young. They’re not only more likely to be a woman than a man, but also more likely to be single than married.

This is the longest the US has gone without a minimum wage increase since 1938

The US government hasn’t increased the federal minimum wage in more than a decade. Some people argue it's wrong that Congress needs to debate whether or not to raise the minimum wage—and that perhaps these raises should be tied to inflation.

In the Netherlands, the minimum wage amounts to a full-time salary of roughly $34,192 per year

The US minimum wage, however, only amounts to roughly $15K per year. This map shows how much minimum wage workers in countries around the world earn on an annual basis in US dollars.

Does minimum wage hurt workers?

Many economists traditionally believed raising the minimum wage hurt workers more than helped them. They argued that doing so would lead to job losses believing that if something is more expensive (like labor), people (like business owners) would want to buy less of it. However, recent research suggests otherwise.

The US restaurant industry generates over $1T in sales

In 2024, the industry brought in $1.1T, and the National Restaurant Association anticipated reaching $1.5T in 2025, numbers that are considered a return to normal after the tumultuous years of the COVID-19 pandemic. The industry also employs a large workforce, with over 13 million employees. (Some readers may experience a paywall.)

Only 28% of Americans think restaurant prices are fair

Seven in 10 Americans dine out at least once a month, but only 28% of diners think menu prices are fair, a 2025 YouGov survey found. That changes only slightly by income, with 44% of higher-income Americans finding the prices fair.

Women tend to tip more often than men

For instance, among people who visit hair salons or barber shops, 62% of female respondents said they always tipped. Only 45% of men said the same. This article includes more takeaways and stats about how Americans tip, and who receives them.

Since 1913, Americans have paid income taxes at varying rates

In the 2020s, the top marginal tax rate has floated around 37%, relatively lower than previous eras. Some have called for boosting the rate significantly to tax the highest earners.

Is Domino’s pizza inflation-proof?

A Big Mac Extra Value Meal is nearly $11 in 2025, compared to $4.59 in 1993. A Taco Bell crunchy taco costs $1.79 today, but was only 59 cents in 1990. Inflation impacts the price of many fast-food items—but the price of a Domino's pizza hasn't changed much at all in the past two decades.

US teachers' earnings have declined since 2010

Although teachers are among the nation’s most educated workers, they earn far less on average than most other highly educated workers. More than 95% of elementary, middle and high school teachers have a bachelor’s degree or more. In 2019, the average earnings of elementary and middle school teachers with a bachelor’s degree or more who work full-time, year-round was $53,800. For high school teachers, it was $57,840.

Contrary to popular belief, the $2 bill is still in circulation today

However, it is far less common than other bills. Usage of the $2 bill has been in decline for decades, but the US Treasury hasn’t retired the bill yet. A podcast episode from the Fed’s educational program explains why the Treasury doesn’t print new $2 bills every year, and why they're still considered legal tender.

One Fair Wage is a national organization advocating for eliminating subminimum wages

Saru Jayaraman has run One Fair Wage since 2020, an offshoot of a 9/11 relief organization for displaced workers and victims’ families she helped start shortly after the attacks. Seventy-three employees of the World Trade Center’s top-floor restaurant were killed on September 11.

Newspaper delivery people, trash collectors, and more: who to tip and how much

The suggested holiday tip amount for garage attendants is between $10 and $50, whereas the suggested holiday tip amount for doormen in apartment buildings is between $25 and $100 each.

Minor leaguers once unionized for better pay, housing, and medical care

For decades, Minor League baseball players endured overcrowded housing, indifferent medical care, and all-night bus rides for a chance to make it to “The Show.” And they did it for as little as $4,800 a year.

Temu was losing an average of $30 per order as of 2024

Some business experts have made the argument that Temu is more focused on rapidly gaining market share and growing its customer base than achieving profitability.

The oldest restaurants in the US

This list features several establishments that have been around since before the Declaration of Independence, including the White Horse Tavern, in Newport, Rhode Island, and New York's Fraunces Tavern, where George Washington dismissed his troops at the end of the Revolutionary War.

Michelin stars aren't permanent

Michelin stars must be maintained year-to-year. Restaurants have lost their stars for a variety of reasons, including chef changes and inconsistent quality.

Domino's Pizza's 30-minute delivery guarantee was responsible for the chain's 1980s surge, but it was discontinued after the company was found liable for delivery driver accidents.

Calculate how much of your tax dollars go to each federal program based on your income, filing status, and number of children

US consumers collectively owe more than $1T to credit card companies—almost as much as they owe in auto loans.

Some coin denominations have ridges etched on their sides, partly to prevent counterfeiting, in a practice called 'reeding.'

About 2,000 US babies are born annually without some portion of their limbs, potentially leading to a lifetime of pricey prosthetics.

See a ranking of the best (and worst) Federal Reserve Chairs since 1914 out of the 16 men and women who have held the office since.

Before the current East Wing ballroom project, only two White House renovations in the past 100 years cost more than $10M.

Up to a million Girl Scouts sell about 200 million cookie boxes every spring, generating $800 million, largely because refusing a child is frowned upon

Mark Twain spent decades feuding with the US Postal Service, convinced its costs and regulations were bureaucratic overreach.

Art theft is the third-largest source of criminal revenues worldwide, thanks in part to the subjective nature of valuing a work of art.

For centuries, it was common to sleep in two shifts: a few hours at the beginning of the night, and a longer period beginning around midnight

The US Constitution is widely regarded as the longest-standing written national constitution still in force—see how it has influenced rights worldwide.

Hedge funds, the private investment firms that trade a wide swath of financial assets, make money by imposing steep fees on investors and from the fund's investment performance.

The United States has had a tumultuous relationship with Cuba since its 1959 revolution, highlighted by a nuclear crisis and a decades-long trade embargo.

Dozens of S&P 500 stocks, including Coca-Cola and Walmart—known as the dividend aristocrats—have increased dividends every year for 25 years

Jimmy Carter signed a 1978 bill that legalized home brewing, a move credited with kick-starting the craft beer industry.

See this overview of the firework rules across all 50 states, ranging from a complete ban on non-professional fireworks in Massachusetts to states with more lax rules like Indiana.

The Beatles' US label rejected the band's first two singles, 'Please Please Me' and 'From Me to You,' with one executive calling the band 'dead in the water.'

The American cockroach is actually from Africa, an apparent hitchhiker aboard ships carrying enslaved people, with evidence suggesting the bug may have arrived in the New World as early as the 1600s.

For centuries, Niagara Falls has been a magnet for daredevils seeking to conquer one of nature's most powerful wonders, with its 200-foot drop and water rushing at 32 feet per second with 280 tons of force.

While El Niño moves warm Pacific Ocean waters east along the equator, La Niña moves them west, shifting where rainfall will become more common for months.

Comedy legend Catherine O'Hara, star of 'Schitt's Creek' and 'Home Alone,' quit 'Saturday Night Live' after just one week to return to her old job.

SpongeBob exemplifies Aristotle's philosophy for living well because he understands that happiness doesn't come from external factors like money, recognition, or power.

Fish populations in the Great Barrier Reef have increased after installing waterproof speakers on the ocean floor that played recordings of sounds from healthy coral reefs.

While atoms are normally made of protons, neutrons, and electrons, exotic ones have been built with antimatter—alternate versions of normal matter that live for fractions of a second and are about a billion times as rare.