Praxis Mutual Funds® has joined with other investors to encourage restaurants to support a full minimum wage for tipped workers.
Letters were sent to leading restaurant companies, including Brinker International (Chili’s), Cheesecake Factory, Darden (Olive Garden, Red Lobster, Texas Roadhouse) and Dine Brands (Applebee’s, IHOP). The letters ask these companies to consider the benefits of supporting a full minimum wage for tipped employees with tips on top, and to cease activities and policies against a full minimum wage.
The subminimum wage for tipped workers is only $2.13 per hour at the federal level. While some states have mandated higher wages, restaurant workers across the country face significant challenges in making ends meet. The low wages and minimal benefits for restaurant employees disproportionately affect women and minorities, who make up a majority of this labor force.
In the current economic climate, many workers are finding better employment opportunities outside the restaurant industry, leading to a worker shortage. Despite this shortage, the restaurant industry has used the National Restaurant Association to lobby against legislation such as the federal Raise the Wage Act, which would raise the minimum wage for all workers nationwide and end the subminimum wage for tipped workers.
Given this backdrop, Praxis is encouraging restaurant companies to adapt their wage and lobbying practices to attract and retain employees, who are critical in maintaining a viable business into the future. The letters request dialogues with each company, and Praxis hopes to engage in productive conversations in the coming months.
Investors have collaborated on this initiative with One Fair Wage, a nonprofit dedicated to ending subminimum wages in the United States and improving wages and working conditions in the service sector.
Praxis holds Brinker International, Cheesecake Factory and Dine Brands in the Praxis Small Cap Index Fund, and Darden in the Praxis Value Index Fund. Learn more about other Praxis funds here.
About Praxis Mutual Funds
Founded in 1994, Praxis Mutual Funds is a leading faith-based, socially responsible family of mutual funds designed to help people and groups integrate their finances with their values. Praxis is the mutual fund family of Everence Financial®, a comprehensive, faith-based financial services organization helping individuals, organizations and congregations.