One fair wage refers to a single minimum wage that applies to every worker, tipped or not, with no separate lower "tipped minimum wage" and no tip credit. It's also the name of a real advocacy organization campaigning for that policy nationally.
What Does "One Fair Wage" Mean?
It describes a wage system where tipped employees, like servers and bartenders, are paid the full state minimum wage directly by their employer, with tips on top rather than counted toward meeting the minimum. This eliminates the "tip credit," the mechanism that currently lets employers in most states pay tipped workers a lower direct cash wage as long as tips make up the difference.
A tip credit allows an employer to count a portion of an employee's tips toward meeting the minimum wage obligation; "one fair wage" describes eliminating that mechanism so tips are paid entirely on top of a full, employer-paid minimum wage.
Is "One Fair Wage" Also an Organization?
Yes. One Fair Wage is a US nonprofit advocacy organization that campaigns for state and local governments to eliminate the tipped subminimum wage and require the full minimum wage for all workers regardless of tips. The phrase is used both as the organization's name and as a general description of the policy it advocates for.
Which States Already Have One Fair Wage for Tipped Workers?
Seven states currently require the full state minimum wage in cash for tipped employees, with no tip credit allowed: Alaska, California, Minnesota, Montana, Nevada, Oregon, and Washington. In every other state, employers may pay tipped employees a reduced direct cash wage as low as $2.13/hr federally, topped up by tips to reach the full minimum wage. See our full state-by-state tipped wage table for the exact rate everywhere else.
What's the Argument for Eliminating the Tip Credit?
Supporters argue that a reduced tipped wage leaves workers financially exposed on slow shifts and makes income unpredictable, since it depends on customer tipping rather than a guaranteed employer-paid wage. They also argue it can create pressure to tolerate poor customer treatment in order to secure tips that make up the bulk of take-home pay.
What's the Argument Against It?
Opponents, including many restaurant industry groups, argue that requiring the full minimum wage on top of tips would raise labor costs significantly for restaurants, particularly in lower-margin, lower-tip establishments, potentially leading to reduced staffing, higher menu prices, or the elimination of tipping-based service models entirely.
Has Any State Recently Changed Its Tip Credit Policy?
State tip credit policy is set through state legislation or ballot initiatives, and the list of no-tip-credit states can change over time as states pass new laws. Check our state-by-state minimum wage guide for the current, up-to-date policy in any specific state.
How Would Ending the Tip Credit Affect Restaurant Pricing?
This is one of the most contested points in the debate. Advocates for one fair wage argue restaurants can absorb the added labor cost through modest price increases without major disruption, pointing to the seven states that already operate this way. Restaurant industry groups counter that margins in the industry are already thin, and that eliminating the tip credit nationally would force sharper price increases or staffing cuts than in states that phased the change in gradually.
Frequently Asked Questions
What does "one fair wage" mean?
A single minimum wage paid to every worker regardless of whether they receive tips, eliminating the reduced tipped cash wage and tip credit system used in most states.
Is One Fair Wage a law or an organization?
Both terms are used. "One Fair Wage" is the name of a nonprofit organization, and "one fair wage" (lowercase) describes the policy that organization advocates for.
Which states have already eliminated the tip credit?
Seven states: Alaska, California, Minnesota, Montana, Nevada, Oregon, and Washington.
Does eliminating the tip credit mean servers earn less overall?
Not necessarily. Servers in no-tip-credit states still keep their tips in addition to the full minimum wage; the change affects the employer's wage obligation, not whether customers tip.
See exactly how the tipped minimum wage and tip credit work in every state in our state-by-state minimum wage guide, or read our Florida and New York tipped wage deep dives. For official federal tip credit rules, see the US Department of Labor's tipped employee guidance.