raise wages – Dispatches From The Front

The company that owns Olive Garden is raising wages in a bid to attract workers. But the move doesn’t go far enough to satisfy critics of a practice common in the restaurant industry.

Currently at Darden Restaurants (DRI), which owns Longhorn Steakhouse, Cheddar’s Scratch Kitchen and other chains in addition to Olive Garden, all employees are entitled to at least the federal minimum wage of $7.25 or state minimum wage.

But not all of their wages have to come from the company. In many states, employers pay tipped workers a sub-minimum wage floor, which amounts to $2.13 at the federal level and is higher in some states. Customers pay the rest in tips. If those tips don’t bring employees up to the minimum wage, companies like Darden are required to make up the difference.

American employers are the equivalent of a shopkeeper who has a “Help Wanted” sign permanently on display in his window, but never actually hires anybody. None of the applicants who come in offer the perfect mix of skills, experience and willingness to accept low pay that the shopkeeper is looking for.

That’s one way of reading some key measures of the labor market, updated Tuesday, that shed light on what afflicts the economy and where things will go from here.

According to the latest Labor Department data, employers had 4.8 million positions they were looking to fill in October. That’s up 25 percent in the last year and 125 percent since the start of the economic expansion in mid-2009.

But for all these vacancies, actual hiring isn’t in a similar boom. The number of people hired is up only 12 percent in the last year and 33 percent over the five-year expansion.

Tag: raise wages

Olive Garden is raising its wages. That’s not the full story | CNN

Employers Will Have to Raise Wages. They Just Don’t Know It Yet. | NYTimes.com