Big Investors Tell Cos. To Serve Tipped Workers Higher Wages

By Tim Ryan (December 11, 2020, 9:22 PM EST) -- Publicly traded companies must stop paying workers the lower tipped minimum wage, a group of investors boasting more than $500 billion in assets said in a letter released Friday, warning that businesses that maintain the practice "may ultimately fail" amid increased public scrutiny of workers' conditions.

The letter put out by Adasina Social Capital said the current "age of corporate social justice" means companies that willingly stop paying tipped workers at the lower minimum wage could see numerous benefits, including boosted profits, increased loyalty from customers and better morale among their workforce.

"Although the payment of subminimum wages is legal according...

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