behind the kitchen door: the social impact of inequality in miami’s growing restaurant industry

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Primary Research Support Provided By:Dawn E. Addy, Ph.D., Florida International UniversityJonathan Hogstad, Restaurant Opportunities Centers United

Editorial Support Provided byBruce Nissen, Ph.D., Center for Labor Research and Studies, Florida International UniversityNirupama Jayaraman

Design by Kim Burgas

February 14, 2011

Research Supported By:The Ford FoundationThe Discount FoundationThe Public Welfare FoundationThe Moriah FundThe Unitaritarian Universalist Veatch ProgramThe Miami FoundationAlleghany Franciscan Ministries of South Florida

By: The Restaurant Opportunities Center of Miami, Restaurant Opportunities CentersUnited, and the Miami-Dade Restaurant Industry Coalition

Behind the Kitchen Door:The Social Impact of Inequality in MiamisGrowing Restaurant Industry


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Primary Research Support Provided By:Dawn E. Addy, Ph.D., Florida International UniversityJonathan Hogstad, Restaurant Opportunities Centers United

Editorial Support Provided byBruce Nissen, Ph.D., Center for Labor Research and Studies, Florida International UniversityNirupama Jayaraman

Design by Kim Burgas

February 14, 2011

Research Supported By:The Ford FoundationThe Discount FoundationThe Public Welfare FoundationThe Moriah FundThe Unitaritarian Universalist Veatch ProgramThe Miami FoundationAlleghany Franciscan Ministries of South Florida

By: The Restaurant Opportunities Center of Miami, Restaurant Opportunities CentersUnited, and the Miami-Dade Restaurant Industry Coalition

Behind the Kitchen Door:The Social Impact of Inequality in MiamisGrowing Restaurant Industry


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Executive Summary

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Executive Summary

Behind the Kitchen Door: Inequality & Opportunity in Miami-Dade Countys Growing Restaurant Industrywasconceived of and designed by the Miami-Dade Restaurant Industry Coalitiona broad gathering of academics,policy analysts, worker advocates, worker organizers, unions, restaurant workers and restaurant industry employers.is paper represents one of the most comprehensive research analyses of the restaurant industry in Miami.

e report uses data from 580 worker surveys, 30 one-hour interviews with restaurant workers, and 30 one-hour in-terviews with restaurant employers in Miami-Dade County. e results of this primary research are supplementedby analysis of industry and government data, such as the Census, and a review of existing academic literature.

Our study was inspired by the need for examination and analysis of the overall health of the restaurant industry,which is fundamental to Miami-Dade Countys economy and critical to the lives of thousands of restaurant workersand employers. e restaurant industry is an important and growing source of locally based jobs, and provides con-siderable opportunity for development of successful businesses. It is therefore essential to make information aboutthe industry from the perspectives of both workers and employers available to all stakeholders to ensure the indus-trys sustainable growth.

A Resilient and Growing IndustryMiami-Dade County is home to a vibrant, resilient, and growing restaurant industry. e industry includes 3,998food service and drinking places that contribute to the regions tourism, hospitality and entertainment sectors andto its economy as a whole. In 2007, the Florida restaurant industry accounted for an estimated $1.68 billion of thestates revenues from sales tax (see Chapter II).

Perhaps the industrys most important contribution to the regions economy is the thousands of job opportunitiesand career options it provides. Despite the current economic recession, the Miami-Dade restaurant industry con-tinues to grow. Employment growth in the Miami-Dade food services sector has outpaced that of the Miami-Dadeeconomy overall since 2000 and the restaurant industry proved much more resilient than the rest of the economy

during the recent recession. Miami-Dade County restaurants employ 65,900 workers, or 7.91% of the countys totalprivate sector employment. Since formal credentials are not a requirement for the majority of restaurant jobs, theindustry provides employment opportunities for new immigrants, workers who have no formal qualications, and

young people just starting out in the workforce.

Many Bad Jobs, A Few Good Ones

ere are two roads to protability in the Miami-Dade County restaurant industry the high road and the lowroad. Restaurant employers who take the high road are the source of the best jobs in the industrythose that pro-

vide livable wages, access to health benets, and advancement in the industry. Taking the low road to protability,however, creates low-wage jobs with long hours, few benets, and exposure to dangerous and often-unlawful work-place conditions. Many restaurant employers in the Miami-Dade County area appear to be taking the low road,creating a predominantly low-wage industry in which violations of employment and health and safety laws are com-

monplace.

While there are a few good restaurant jobs in the industry, and opportunities to earn a livable wage, the majorityare bad jobs, characterized by very low wages, few benets, and limited opportunities for career advancement orincreased income. According to the U.S. Bureau of Labor Statistics, the median hourly wage for restaurant workersis only $8.88, which means that half of all Miami-Dade restaurant workers actually earn less.

In our own survey of restaurant workers, the vast majority (89.6%) reported that their employers do not o er themhealth insurance (see further Chapter III). Earnings in the restaurant industry have also lagged behind those in theentire private sector. In terms of annual earnings, restaurant workers on average made only $18,912 in 2009 com-pared to $43,395 for the total private sector, according to the Quarterly Census of Employment and Wages, Bureauof Labor Statistics.


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Executive Summary

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Several workers in our study reported overtime and minimum wage law violations, lack of health and safety training,and failure to implement health and safety measures in restaurant workplaces. Close to half of all workers surveyed(45.5%) experienced overtime violations and 27.1% reported working othe clock without being paid.

Occupational Segregation and DiscriminationStructural inequality and discrimination in the industry compound historical patterns of employment discrimina-tion, residential segregation, and discriminatory transportation eects. Workers of color are largely concentrated inthe industrys bad jobs, while White workers tend to disproportionately hold the few good jobs. Workers of colorare overrepresented in lower-paying positions and in lower-paying segments of the industry, resulting in a signi -cant wage dierential between White workers and workers of color. Whites in our survey reported a median wage of$11.29 while the median wage was $10.00 for Latinos, $9.00 for non-Haitian Blacks and $8.21 for Haitians. Work-ers also reported discriminatory hiring, promotion and disciplinary practices; 40.3% of workers experiencing verbalabuse reported that it was on the basis of race.

The Social Costs of Low-Wage JobsOur research also reveals the hidden costs to customers and taxpayers of low-wage jobs and low-road workplacepractices. Violations of employment and health and safety laws place customers at risk and endanger the public. Forexample, restaurant employers who violate labor laws are also more likely to violate health and safety standards inthe workplacesuch as failing to provide health and safety training, or forcing workers to engage in practices thatharm the health and safety of customers (see further Chapter VI).

e pervasiveness of accidents coupled with the fact that so few restaurant workers have health insurance can lead toescalating uncompensated care costs incurred by public hospitals. For example, 24.4% of surveyed workers reportedthat they or a family member had visited the emergency room without being able to pay for their treatment.

Finally, low wages and lack of job security among restaurant workers lead to increased reliance on social assistanceprograms resulting in an indirect subsidy to employers engaging in low-road practices and fewer such public resourc-es available for expenditures such as education, public safety, transportation, and social wellbeing. Hence, wheneverrestaurant workers and high-road employers are hurt by low-road practices, so is the rest of society.

The High Road Is PossibleIt is possible to create good jobs while maintaining a successful business in the restaurant industry. Our interviews

with employers revealed that it is possible to run a successful restaurant business while paying livable wages, providing workplace benets, ensuring adequate levels of stang, providing necessary training, and creating careeradvancement opportunities.

In fact, close to 9% of the workers we surveyed reported earning a livable wage, and similar numbers reported re-ceiving benets, thereby demonstrating both the existence of good jobs and the potential of the industry to serveas a positive force for job creation. Workers who earn higher wages are also more likely to receive bene ts, ongoingtraining and promotion, and less likely to be exposed to poor and illegal workplace practices. For example, workersin livable-wage jobs were almost twice as likely as workers making less than minimum wage to have health insur-ance. Workers earning a living-wage were also more likely to have received training or to have been promoted intheir current workplace. Some employers have shown that it is possible to run a protable business and pay their

workers well; all employers can do the same, particularly if the playing eld is leveled by correcting the practices oflow-road employers.


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Executive Summary

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Our Recommendationse Restaurant Industry Coalition recommends the following steps to address the workplace problems documentedin our study:

1. Level the playingeld by providing paid sick days and increasing the tipped minimum wage.Policymakers should level the playing eld by requiring all employers to provide paid sick days totheir employees.e lack of paid sick days can result in public health challenges for the entire region.Policymakers should also raise the minimum wage for tipped workers to be closer to the minimum wagefor all other workers.

2. Incentivize high-road practices. Initiatives and incentives should be considered to assist and encourageemployers to provide livable wages, basic workplace benets, and opportunities for advancement torestaurant workers. Such initiatives could include rent and property tax incentives for employers whoimplement exceptional workplace practices, subsidies to employment-based health insurance, or supportof collective health insurance provisions across the industry, such as the one that ROC has developednationally.

3. Promote opportunity, penalize discrimination. Policymakers must explore initiatives that encourage

internal promotion and discourage discrimination on the basis of race and immigration status in therestaurant industry.

4. Enforce employment laws in the restaurant industry. Labor, employment and health and safetystandards should be strictly enforced. Legislators should consider an employers compliance withthese standards in granting government licenses. Employers must also be educated about their legalresponsibilities towards their employees and provided necessary support to meet their obligations totheir workers and to the public. It is in the interest of both workers and the public at large that existingstandards be observed and enforced.

5. Promote model employer practices. Model employer practices should be publicized to provide much-needed guidance to other employers in the industry.e vast majority of employers we interviewed agreedin theory that high-road workplace practices were better. However, many appeared unaware of how tosuccessfully implement them in practice.

6. Respect workers right to organize. Barriers to organizing restaurant workers should be addressedand the public benets of unionization in this and other industries should be publicized in light of thesignicant benets to workers and employers alike which can arise when workers unionize.

7. Support further industry research. Further study and dialogue should be undertaken that includesrestaurant workers, employers, and decision-makers in order to ensure eective and sustainable solutionsto the issues identied in our studyespecially race-based discrimination, and the impacts of theindustrys practices on health care and public program costs.

e information collected here from workers, employers, and industry experts is critical to ensuring that Miami-Dade Countys restaurant industry truly shines not only as an important contributor to the regions job market andeconomy, but also as a beacon to the well-being of its workers and communities.


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EXECUTIVE SUMMARY i

TABLE OF CONTENTS

C H A P T E R I: INTRODUCTION AND METHODOLOGY 1

C H A P T E R II: OVERVIEW OF MIAMIDADE COUNTYS RESTAURANT INDUSTRY 4

C H A P T E R III: WORKERS PERSPECTIVES 16

C H A P T E R IV: EMPLOYERS PERSPECTIVES 37

C H A P T E R V: SEGREGATION & DISCRIMINATION 54

C H A P T E R VI:THE SOCIAL COST OF LOWWAGE JOBS 75

C H A P T E R VII: CONCLUSIONS & PUBLIC POLICY RECOMMENDATIONS 85

APPENDIX: SURVEY DEMOGRAPHICS 88

ENDNOTES 90

All contents Copyright 2011 Restaurant Opportunities Centers United (ROC-United)

Behind the Kitchen Door:The Social Impact of Inequality in the MiamisGrowing Restaurant Industry

Table of Contents


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Chapter I

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C H A P T E R I

Introduction and Methodology

e Miami-Dade restaurant industry has enormous potential, both as an employer and as an engine of eco-

nomic growth. Over the past twenty years, the restaurant industry has expanded, and despite the recent economicdownturn, it continues to outpace other industries (see Chapter II). Unlike many jobs in the manufacturing andtechnology sectors, restaurant jobs cannot be outsourced. For this reason, they are anticipated to occupy an increas-ing share of the regions economy in the near future.

e regions restaurants are an important source of jobsparticularly for people of color, new immigrants, andyoung people just starting in the workforce (see Table 2, Chapter II). ousands of Miami-Dade restaurant workersearn livable wages and receive health carebenets. e industry also oers opportu-nities for joining the ranks of the many en-trepreneurs who have fullled their dreamof opening their own restaurants. Most jobsin the industry, however, are characterizedby low wagesoften below poverty levelno health insurance, no sick and vacationdays, few advancement opportunities, andexposure to poor and illegal workplace con-ditions.

Our primary research, review of existingliterature, and analysis of government andindustry data reveal that there are two roadsto protability in the Miami-Dade restau-rant industry the high road and the lowroad. Restaurant employers who take the

high road are the source of the best jobs inthe industry those that enable restaurant

workers to support themselves and theirfamilies, remain healthy, and advance in theindustry. Taking the low road to protabil-ity, on the other hand, creates low-wage jobs with long hours and few bene ts. It ultimately harms workers, otherrestaurant employers, consumers, and taxpayers.

Our research and existing government and industry statistics indicate that the majority of employers in Miami-Dades restaurant industry, like restaurant employers in other parts of the country, are employing low-road work-place practices. is contributes to the creation and perpetuation of a predominately low-wage industry in whichfew workers enjoy basic workplace benets and safe and healthy working conditions. ese practices often lead to

violations of workers basic rights, as well as federal and state wage and hour laws and health and safety regulations.e restaurant industry has the potential to create jobs that allow workers to support their families, but often insteadends up proliferating bad jobs in the current economy jobs that cannot sustain workers, their families, and ourcommunities. Our worker surveys and interviews illustrate the impacts such bad jobs have on peoples lives.

Our interviews with employers highlight many of the factors that drive them to take the low road to protability,often against the principles of the good business practices they espouse, as well as strategies employed by some res-taurant employers to overcome these factors. It is possible to achieve success in the restaurant business by pursuingthe high road, but employers ability to do so is undermined by pervasive use of low-road workplace practices inthe industry, creating an unlevel playing eld. Our research also demonstrates the importance to public health andpublic coers of encouraging and supporting the majority of restaurant employers to improve practices.

CONCEPT & METHODOLOGY

This study was conceived and designed by the Miami-Dade

Restaurant Industry Coalition a broad gathering of academics,

economic development groups, policy analysis groups, unions,worker advocates, and employers. It represents one of the most

comprehensive research analyses of the restaurant industry inMiami-Dade history.

Data was collected from 580 worker surveys, in-depth interviewsand focus groups with 30 restaurant workers, and 30 interviews

with restaurant industry employers in the County. Data collection

took place over a one-year period by sta, members, andvolunteers from the Restaurant Opportunities Center of Miami.

Surveys were conducted face-to-face with workers in the vicinityof restaurants during breaks or at the end of shifts, and inside

restaurants. Data collected for this study followed standard

research protocols and the data have been cleaned and weightedfor statistical signicance. The results of this primary research are

supplemented by analysis of industry and government data, suchas the Census, as well as a review of existing academic literature.

For more details on our methodology see appendix.


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In our research, we also found a high degree of separation in wages and working conditions between White work-ers and workers of color in the Miami-Dade restaurant industry. Our research suggests at least two key aspects ofthese disparities: (1) racial segregation by occupation or position; and (2) racial segregation by industry segment.Front-of-the-house workers, such as servers andbartenders with whom diners interact, and back-of-the-house workers, such as cooks and dish-

washers, are largely segregated by race. Restaurantworkers in the front of the house generally receivehigher wages, better working conditions, training,and advancement opportunities than those behindkitchen doors. e majority of White workers inthe Miami-Dade restaurant industry are employedin front-of-the-house positions. Workers of colorare largely concentrated in the back of the house in the lowest paid jobs requiring the longest hours,featuring the greatest health and safety hazards,and oering the fewest advancement opportuni-

ties. In addition to these disparities, restaurantworkers we spoke with reported experiencing fre-quent verbal abuse, excessive discipline, and barri-ers to promotion they believed to be based on raceand immigration status. White restaurant workers

were signicantly more likely to be employed inne dining establishments, which oer the highestconcentration of livable wage jobs in the industry.By contrast, Black workers were much more likelyto be employed in the lower-paying quick-servicesegment of the industry.

In this report, we have compiled the perspectivesof employers, government and industry data, theexperiences of workers, and academic research. Ineect, we have created a unique and rich source ofinformation on the metropolitan areas restaurantindustry to help guide eorts to end discriminato-ry workplace practices, and promote the high-roadbusiness model. is model should serve as a positive engine of economic growth in Miami-Dade County.

TERMS USED IN THIS REPORT

Front of the House and Back of the House refer torestaurant industry terms for the placement and function

of workers in a restaurant setting. Front of the house

generally represents those interacting with customers inthe front of the restaurant including wait sta, bussers,

and runners. Back-of-the-house workers generally referto kitchen sta including chefs, cooks, food preparation

sta, dishwashers and cleaners.

High road and low road are industry terms referring to

opposing business strategies for achieving productivityand protability. In this report, the former is used to denote

employer practices that involve investing in workers by

paying livable wages, providing comprehensive benets,opportunities for career advancement, and safe workplace

conditions as means to maximize productivity. Usingthis denition, this research highlights the connection

between these practices and the results of reduced

turnover as well as better quality food and service. Lowroad refers to strategies that involve chronically stang

the restaurant with insucient numbers to support theworkload, failing to provide benets, pushing workers to

cut corners, and violating labor, employment and health

and safety standards. Low road practices, as denedin this report are not simply illegal practices they are

employment practices, such as providing low wages andlittle or no access to benets that are not sustainable

for workers and their families. This research will showthat these practices have a long-term negative impact on

both consumers and employers as well as workers.


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C H A P T E R IIOverview of Miamis Restaurant Industry


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Chapter II

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C H A P T E R II

Overview of Miamis Restaurant Industry

A. A Signicant and Growing Industrye restaurant industry has been a major contributor to the local economy. Between 1998 and 2008, the number ofrestaurant establishments in Miami-Dade County grew almost 20 percent in only a decade from 3,378 to 3,998, byfar the most restaurants of any county in the Southeast U.S.1e industry employed 65,900 employees as of 2009.2

e restaurant industry is a key contributor to Floridas economy as a whole. In 2007 (the last available data fromthe Economic Census), Floridas restaurants garnered over $28 billion in sales revenues , generating an estimated$1.68 billion in revenues3 to the state from sales taxes4 from the work of 598,276 restaurant employees statewide.5 InMiami-Dade County, the restaurant industry generated almost $4 billion in sales revenues in the same year. 6

Although considerable skills are needed to work in this industry, no formal credentials are generally required, mak-ing restaurants a viable avenue of employment for workers who have not had the opportunity to pursue formal train-

ing. Restaurant employment also serves as an important entry point into the job market for new immigrants to theUnited States, whose professional credentials and experience abroad are often not recognized.

B. How Many Jobs?

TABLE 1. Employment in the Restaurant Industry and Other Major Private Sector Industries,

Miami-Miami Beach-Kendall, FL Metropolitan Division, 2009 Annual Employment

Industry Employment (in 1000s)Share of Total Private Sector

Employment

Total Private Sector Employment 833.4 100.00%

Retail Trade 119.2 14.30%

Wholesale Trade 68.5 8.22%

Food Services and Drinking Places 65.9 7.91%

Professional, Scientic and Technical Ser-vices

62.1 7.45%

Administrative and Support and WasteManagement and Remediation Services

59.6 7.15%

Ambulatory Health Care Services 50.2 6.02%

Finance and Insurance 44.1 5.29%

Hospitals 41.6 4.99%

Manufacturing 37.6 4.51%Construction 36.9 4.42%

Source: Bureau of Labor Statistics Current Employment Statistics.

As indicated in Table 1, the Food Services and Drinking Places sector (hereafter the restaurant industry) pro-vides 65,900 jobs in Miami-Dade County, and is one of the three largest private sector industries in the area behindRetail Trade and Wholesale Trade.7e restaurant industry has seen more robust growth than the rest of the econ-omy over the past four decades. Even during the recent recession, the Miami restaurant industry fared much betterthan the rest of the economy, posting small growth in 2008.8 Figure 1 shows that the restaurant industry has steadilyincreased as a proportion of total private sector employment since the 1970s, expanding its share of total private sec-


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Chapter II

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tor jobs from 5.19% in 1974 to 7.91% in 2009.9 Moreover, Figure 1 shows an acceleration of this process during theeconomic crisis. e restaurant industry currently employs more people than many industries such as Constructionand Manufacturing, and industries that experienced more recent growth such as Professional, Scientic and Tech-nical Services, and Finance and Insurance.10

FIGURE 1: Food Service and Drinking Place Jobs as a percent of Total Private Sector Jobsfrom 1972 to 2009, Miami-Dade County.11


Figure 2 depicts total private sector employment growth as well as employment growth in the restaurant industry inMiami-Dade County through 2009 relative to the base year of 1990. Growth in the restaurant industry has outpacedthe rest of the economy, particularly after 2000.12 Even during the current economic crisis, locally or nationally, therestaurant industry has not nearly suered the same job losses that the economy as a whole experienced. Nationally,between December 2007 and June 2010, the whole economy experienced a 5.5% job loss, while the restaurant in-

dustry experienced less than half of that loss, or 2.4%.13 In Miami, in the two-year period after the crisis began, theoverall economy shed 9.0% of jobs, while the restaurant industry only shed 3.3%.14


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Chapter II

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FIGURE 2: Job Growth Relative to 1990 Base Year for Total Employment and Restaurant

Industry Employment.15


C. What Kind of Restaurant?

e U.S. Census Bureau includes four distinct industries in the food services sector: full-service eating places, lim-ited-service eating places, special food services, and drinking places.16e restaurant industry is generally under-stood to include the rst two of these categories; namely, full-service restaurants and limited-service eating places.Although the Census does not distinguish between dierent types of full-service restaurants, we consider both nedining restaurants and family-style or franchise restaurants falling within the full-service restaurant category.Limited service restaurants are also known as quick serve restaurants that do not oer waiter service, such as fastfood establishments or delicatessens.

Within full-service restaurants and limited-service eating places, we have identied three general sub-segments ofthe restaurant industry which are presently not specied in government data, but were most useful for understand-ing the varying practices and strategies used by individual businesses.

1. Fine dining, or what is commonly referred to as tablecloth restaurants;2. Family-style restaurants, also described as casual dining, including both franchise or chain restaurants

such as Olive Garden or Applebees, and smaller establishments, frequently neighborhood-based and/orethnic restaurants;

3. Fast-food or quick-serve restaurants.

We also found through the interviews with employers that workplace practices are driven by factors such as whethera restaurant is part of a hotel, a larger corporation, chain or group and how many other restaurants the owner has,if any. We found that the majority of the ne dining restaurants are part of restaurant groups or are one of multiple(three or more) restaurants under the same owner. Non-franchise, family-style restaurants are overwhelmingly sin-


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Chapter II

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gly-owned or one of two restaurants owned by the same party. ese trends had profound impacts in terms of em-ployers power, or lack thereof, to dene standards and policies that aect their business and buying power, which isa key component of their competitiveness and protability in the industry.

D. Who gets the Jobs?Most jobs in the restaurant industry do not require formal education, and, with the exception of chefs and somme-liers (wine stewards), employers generally do not require workers to have educational degrees or vocational certica-tion. is is not to say that restaurant workers do not have skills or that restaurant work is not demanding. Back ofthe house workers, often working in hot, cramped spaces must be able to complete the tasks required to accuratelyll orders in a timely and quality fashion in a high pressure environment. Front of house sta and other employ-ees who interact with customers need strong interpersonal skills, time and task management skills, and a workingknowledge of food preparation and presentation.

e industry is consequently an important source of jobs and income for large numbers of new workers who do nothave formal training or are new to the workforce. e industry is also a source of employment for women, youth,people of color, and immigrants particularly new immigrants, whose prior education and experience abroad is of-ten not recognized by employers in the U.S. e Bureau of Labor Statistics reports that the restaurant industry isthe single largest employer of immigrants in the nation. In 2008, immigrants represented more than 2 million ofthe industry s employees nationwide.17 In 2009, immigrant workers made up 58.8% of the total restaurant workforcein Miami-Dade (see Table 2).

E. What are the Characteristics of the Workforce?

As Table 2 shows, the workforce of the Miami-Dade restaurant industry is generally representative of the greaterMiami-Dade workforce particularly in the large proportion of foreign-born Latino workers. However, restaurant

workers tend to be younger and have increased in levels of education over time. Some key statistics include:

Over the last 9 years, the Miami-Dade County restaurant workforce has grown older, with a pro-nounced increase in 6.9% of workers between the ages of 45 and 64. Restaurant workers are still,however, signicantly younger on average than other workers. Over seventy one percent (71.2%) of

restaurant workers are between the ages of 16 and 44, while only 51.3% for the total workforce is un-der age 44.

Between 2000 and 2009 the restaurant industry workforce also saw a signicant increase in educa-tion levels. While 41.1% of restaurant workers had less than a high school level of education in 2000,only 24.5% did by 2009. at was accompanied by increases in the numbers of restaurant workers

with high school degrees and some college experience. ese increases actually make Miami-Daderestaurant workers slightly more educated than the overall workforce except at the bachelor degreeand above levels.

Overall, the restaurant industry workforce has maintained fairly constant concentrations of foreign-born and minority workers. Latinos comprise the largest group, at 56.1% of the population, while even

percentages of Blacks and Whites make up the rest. In this regard, the restaurant industry re

ects thedemographics of the larger Miami-Dade workforce.


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TABLE 2: A Demographic Prole of Metro Miami Restaurant Workers, 2000-2009

column percentages

Restaurant Workers 2009 Only

2000 2009Dierence

(2009-2000)

All MetroMiami

Workers

Dierence (Res-taurant Workers

All Workers)

Gender Male 51.3 51.4 0.1 48.2 3.2

Female 48.7 48.6 -0.1 51.8 -3.2

Age 16-24 30.4 26.7 -3.7 14.5 12.2

25-44 46.7 44.5 -2.2 35.8 8.7

45-64 19.1 26.0 6.9 31.5 -5.5

65 and older 3.8 2.7 -1.1 18.2 -15.5

Race/Ethnicity Non-Hispanic White 20.4 20.7 0.3 19.5 1.2

Non-Hispanic Black 21.1 18.4 -2.7 16.2 2.2

Asian 2.9 3.7 0.8 1.5 2.2

Hispanic, any race 52.8 56.1 3.3 62.0 -5.9

Other or more than one race/ethnicity

2.9 1.1 -1.8 0.8 0.3

Place of Birth US 39.5 41.2 1.7 38.2 -3.0

Latin America 51.8 51.0 -0.8 54.9 -3.9

Europe 2.9 2.3 -0.6 2.1 0.2

Asia 2.9 4.5 1.6 1.8 2.7

Other 2.9 1.1 -1.8 2.9 -1.8

Years in US Born in the U.S. 39.5 41.2 1.7 38.2 3.0

0-5 16.1 13.7 -2.4 8.5 5.2

6-10 11.5 14.0 2.5 10.7 3.3

11-15 11.9 8.7 -3.2 7.3 1.4

16-20 9.4 6.3 -3.1 6.9 -0.6

21 or more 11.5 16.2 4.7 28.4 -12.2

Ability toSpeak English

Speaks only English 33.9 31.2 2.7 29.4 1.8

Speaks very well 28.1 29.5 -1.4 32.3 -2.8

Speaks well 14.0 13.1 0.9 13.6 -0.5

Speaks, but not well 15.0 18.9 -3.9 14.5 4.2

Does not speak English 9.1 7.3 1.8 10.3 -3.0

Education Less than High School 41.1 24.5 -16.6 24.3 0.2

High School Degree 26.6 33.3 6.7 24.5 8.8

Some College 23.5 31.5 8.0 28.7 2.8

Bachelors Degree and Higher 8.9 10.8 1.9 22.5 -11.7

Source: U.S. Bureau of the Census, Public Use Micro Sample from US Census (2000) and American Community Survey (2009).


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F. What do the Jobs look like?Jobs in the restaurant industry generally fall into one of three categories, each corresponding to dierent levels ofcompensation, potential for mobility, access to training, workplace conditions, and other important indicators of jobquality:

1. Managers and supervisors, including chefs.

2. Front-of-the-house positions, including all stawho have direct contact with customers, such as servers, bartend-ers, and bussers.

3. Back of the house positions, or those that do not regularly involve direct contact with customers, but are essentialto a restaurants functions, such as dishwashers and cooks.18

G. What do the Jobs Pay?

e data in Table 3 shows that the restaurant industry oers predominantly low-wage jobs. e median wage for all res-taurant occupations in Miami-Dade County is only $8.88 an hour, compared to the median wage of $14.77 for all workersin the county.19 Eighty percent (80.74%) of workers in the industry are employed in positions for which the hourly median

wage is below $10.00. Moreover, people of color hold the majority of the lowest-paid jobs in the restaurant industry, whichis discussed in detail in Chapters III: Workers Perspectives and Chapter V: Segregation & Discrimination.

TABLE 3: Employment and Median Wages for Food Preparation and Serving Related Occu-pations in Miami-Miami Beach-Kendall, 2009.20

Occupation Employment shareMedian hourly

wage

Food Preparation and Serving Related Occupations 100.00% $8.88

Chefs and Head Cooks 1.41% $22.68

First-Line Supervisors/Managers of Food Preparation and Serving

Workers6.12% $15.87

Cooks, Institution and Cafeteria 2.44% $12.91

Cooks, Restaurant 8.77% $12.10

Cooks, Fast Food 2.84% $8.92

Cooks, Short Order 0.79% $8.83

Food Preparation Workers 8.01% $9.14

Bartenders 3.39% $8.58

Combined Food Preparation and Serving Workers, Including FastFood

23.10% $7.89

Counter Attendants, Cafeteria, Food Concession, and Coee Shop 4.02% $8.44

Waiters and Waitresses 22.44% $8.67

Food Servers, Nonrestaurant 2.04% $9.45Dining Room and Cafeteria Attendants and Bartender Helpers 5.27% $7.94

Dishwashers 6.17% $8.25

Hosts and Hostesses, Restaurant, Lounge, and Coee Shop 2.68% $9.74

Food Preparation and Serving Related Workers, All Other 0.46% $11.74

Industry workers that work in a position with a median wage below

$10 per hour80.74%

Source: Bureau of Labor Statistics, Occupational Employment Statistics Survey for Miami-Miami Beach-Kendall, 2009


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While the number of jobs in the Miami-Dade restaurant industry has grown, wages in the industry have not. AsFigure 3 illustrates, average annual earnings in the restaurant industry have lagged behind those of the entire pri-

vate sector in Miami-Dade over the last decade. In fact, over the last decade, the restaurant industry has maintainedwages that are on average $25,248 lower than those of the entire private sector. us, restaurant wages continued tobe much lower than those in other economic sectors, despite the job growth in the industry during the same periodand the sharp increase in education levels within the restaurant workforce (see part E, this chapter).

FIGURE 3: Average Annual Earnings for Total Private Sector and Restaurant Industry,Miami, 2001-2009.20

Source: Bureau of Labor Statistics, Quarterly Census of Employment and Wages.Note: Earnings are deated using the CPI-U for the Southeastern Region from BLS. 21

One other aspect to consider is the role of the restaurant industry in the recovery from the recent economic crisis.According to National Employment Law Project analysis of Bureau of Labor Statistics (BLS) data, the economiccrisis has shown signs of an alarming restructuring of the labor market. While job loss was skewed towards higher

wage occupations, job recovery thus far has been skewed toward traditionally low wage jobs in retail trade and therestaurant industry.is bottom-heavy distribution of job opportunities challenges workers abil ity to support theirfamilies, but also the broader goal of restoring robust consumer demand.22us, at this point in time, the restau-rant industry provides both an opportunity and a threat to the economy. On the one hand, this industry can providemillions of jobs. On the other hand, if the wages for these jobs remain largely below poverty levels, the economicrecovery could be greatly prolonged by undermining consumer demand.

While a majority of jobs are low-wage, low-road jobs in the restaurant industry, our survey research shows that thelow road is not the necessary path in this industry. Almost a tenth of workers earned livable wages, and similar num-bers reported enjoying comprehensive benets, opportunities for career advancement, and better workplace condi-

tions. While these workers are in the minority, their experiences reect the reality that some restaurant employersare pursuing the high road to protability.

$0

$10,000

$20,000

$30,000

$40,000

$50,000

2000 2002 2004 2006 2008 2010

Total Private Sector

Restaurant Industry


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C H A P T E R IIIWorkers Perspectives


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C H A P T E R III

Workers Perspectives

e information summarized in this chapter is a compilation of the results of 580 surveys with restaurant workersconducted between January to December 2009 and 30 worker interviews conducted between July and September2010. By speaking directly with Miami-Dade restaurant workers, we gained more insight into the daily experiencesof working in the areas eateries.

Where earnings are concerned, our research results are consistent with existing data the major-ity of restaurant workers we spoke with reported very low wages.

Most restaurant workers do not receive workplace benets such as employer-provided health cov-erage, paid sick days, or vacation days.

Most restaurant workers we spoke with do not receive regular raises, promotions, or ongoing jobtraining.

Seven percent (7.2%) of all restaurant workers surveyed have unlawfully been paid less than theminimum wage of $7.25 including wages and tips. Even among those making more than $7.25in wages and tips, an additional 26.8% illegally receive less than the $4.23 that the law stipulatesmust be paid to all tipped workers, regardless of total (wage plus tips) compensation.

Almost half of restaurant workers (45.5%) in Miami-Dade are not paid 1.5 times the normal wagefor when they work over 40 hours, in violation of state and federal laws. In fact, we even receivedreports from some workers that they were not being paid at all for any hours they worked beyond40.

A substantial number of workers reported health and safety hazards at their workplace, com-pounded by a pervasive lack of health and safety training. In addition, on-the-job injuries were

reported by many of the workers we spoke with.

Many workers reported that assertions of their rights were met with verbal abuse and threats ofretaliation.

Workers earning poverty wages are less likely to receive benets such as employer provided healthinsurance, more likely to suer employment law violations, less likely to benet from opportu-nities for advancement, and more likely to have done something due to time pressure that mighthave harmed the health and safety of the customer.


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A. Introduction and Methodologyis study was motivated in part by the current dearth of qualitative data documenting the experiences of restaurantworkers in Miami-Dade County. In an eort to pick up where ocial and industry statistics leave o, the Miami-Dade Restaurant Industry Coalition designed a survey to capture detailed information regarding individual workers

experiences beyond hourly wage data. e survey instrument explored the availability of benets, working condi-tions, hiring and promotion practices, the existence of job-specic training opportunities, employer discrimination,and the nature of working conditions in the industry. Stratied sampling methods were chosen to provide an accu-rate proportional representation of restaurant workers in the Miami-Dade County. Stratication was used as a sam-pling technique to ensure that our sample was as representative as possible.23 To add to the rigor of the survey designand administration, we weighted the data according to front and back of the house in full-service and limited-servicerestaurants to appropriately reect the actual distribution of positions. All resulting statistics from this survey willrefer to the weighted gures unless otherwise stated.

e survey was administered from January to December 2009 by sta, members, and volunteers from the Restau-rant Opportunities Center of Miami a community-based organization with signicant contacts among restaurant

workers and access to workplaces in the industry. A total of 580 surveys were conducted face-to-face with work-ers in Miami-Dade County after workers shifts were completed or during breaks. We sought to e ectively captureexperiences in all types of restaurants, and surveyed workers in each of the three main segments of the industry. 24Furthermore, our sampling frame, or set of participants from which the sample was drawn, consisted only of work-ers employed in the industry (for detailed survey methodology see appendix).

Additionally, in order to obtain a holistic picture of the daily lives of individual restaurant workers, qualitative inter-views and focus groups were conducted with a total of 30 workers to gain in-depth information about the nature ofworking conditions. A general interview guide approach was used to conduct the one-on-one in person interviews.e guide, developed by Dr. Manny Ness of Brooklyn College, contained standardized open-ended questions toensure that the same general areas of information were collected from each interviewee. Interviewers were trainedhow to use the guide to conduct semi-structured, conversational interviews.25

B. Earnings

You usually feel underpaid and overworked. Especially when you are working in the background [backof the house]. Female, Latina, 10 months in the industry, Server

Our survey data are consistent with government and industry statistics demonstrating that restaurant work is pri-marily low-wage work.26

Our survey research indicates that over nine-tenths (90.9%) of Miami-Dade restaurant workers earn less than thelivable wage of $17.63 an hour. Just over seven percent (7.2%) of this group do not even make the minimum wage$7.25 per hour even when tips were accounted for. Only 9.0 % of workers make a livable wage. A livable wage af-fords the earner and her or his family the most basic costs of living without need for government support or povertyprograms27 and was calculated based on the Economic Policy Institutes Basic Family Budget Calculator (see sidebox for wage group denitions).

Many workers we interviewed, particularly back-of-the-house workers, told us that their wages were unacceptablylow. A line cook with 9 years in the industry told us, Pay is def[initely] not good in most places. ey under pay youand the amount of work is too much and causes stress and burden. A pantry cook with 4 years of industry experiencetold us that there are also expenses that go unreimbursed while suering low pay. She said, Well, I saw on manyoccasions that the guys would come in to work, and Bayside is an expensive place. Everyone has cars and the parkingcosts $15. And the guys would come, the busboys, the servers, and they would punch in and they would be told togo home because there werent enough customers. ey also paid the gas to get there. An hour of travel and afterpaying the parking they are told to go home. Many tipped workers told us about the diculties of depending ontips to make a living in a city where tips vary so widely between high season and low season for tourism. One server

with 10 years industry experience said, [e amount you earn in tips] depends on the season. If its the o season,itll be forty percent less than regular.


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Methodology for Denition of Wage Groups for Survey Data Analysis:

Real wages were determined by either calculating workers average weekly earnings including tips and dividing by

the average number of hours worked per week or, for un-tipped workers, using their hourly wage. Wage groups

were then created using the Florida State minimum wage at the time the survey was conducted of $7.25 (or $15,080annually at 40 hours per week), the Department of Health and Human Services (HHS) 2008 federal poverty line

earnings for a family of three of $18,310 per year (meaning $8.80 per hour at 40 hours per week), and the EconomicPolicy Institutes (EPI) Basic Family Budget Calculator for the livable wage for a family of three. The following six

factors were chosen to calculate a livable wage: a) Housing, b) Food, c) Transportation, d) Healthcare, e) Taxes andf) Other basic necessities. The livable wage was calculated to be $17.64 an hour (or $36,691 annually at 40 hours

per week). The wage distribution of the sample can be seen in Table 4.

TABLE 4: Wages Earned by Restaurant Workers

Less Than Minimum Wage (< $7.25) 7.2%

Below Poverty Line ($7.25 $8.79) 32.7%

Below Livable Wage ($8.80 $17.63 ) 51.0%

Livable Wage ($17.64 and higher) 9.0%

Source: Miami-Dade Restaurant Industry Coalition survey data

e results of our worker surveys and interviews demonstrate a large discrepancy between workers of color and Whiteworkers in wages and position. e impact of occupational segregation (to be discussed further in Chapter V: Segrega-tion & Discrimination) is substantial: we found the median wage of the survey sample to be $9.50 an hour, but when

workers of color were taken out of our sample, the median wage rose to $11.29 an hour.

Wage Laws in Florida

In general, Florida employers are obliged to follow the federal minimum wage of $7.25 as it is currently greaterthan the Florida minimum wage. However, the earnings picture is slightly dierent for restaurant workers whencompared to other workers because an exception to minimum wage laws is made for workers who regularly

receive tips. As a result, restaurant employers in the State of Florida are permitted to pay tipped workers minimum

wages of $4.23 per hour, or 58% of the federal minimum wage, as long as tips make up the dierence between$4.23 and the minimum hourly wage of $7.25. If they do not, the employer must pay workers the dierence.28

The Restaurant Industrys Contribution to Miami-Dade Poverty

Miami has one of the highest poverty rates of the larger U.S. cities, with a poverty rate of 26.9%. Of the 351,000

residents, 94,530 of the residents of Miami live below the poverty line.29 According to our survey research, nearly

forty percent (39.9%) of Miami-Dades 65,900 restaurant workers live below the poverty line. This means thatrestaurant workers account for a large portion of residents living below the poverty line.

In Miami, there is also a large income disparity along racial lines. Whites have a median annual household income

of $63,723, Latinos have a median income of $25,673, and Blacks have a median income of $18,710. 30 Our survey

research also indicates that these income disparities are also reected in the restaurant industry (see Chapter V).


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C. BenetsNo, no, no not in the restaurant business. Never had benets. Male, White, 7 years in the in-dustry, Server

In [restaurant name] I didnt get anything, which was weird because its so well known and itsnedining. I thought we would be able to have some kind of benets, but there were none being oered tous. Male, Turkish, 2.5 years in the industry, Cook

Starting at zero everyday can be stressful, because like I said in the down times you dont really knowwhat youre going to make. And making ends meet becomes you know... theres no job stability there sobenets would be nice. Female, White, 10 years in the industry, Server

In addition to being paid low wages, often times below the poverty level, and working long hours, the majority ofrestaurant workers surveyed reported that they do not receive basic workplace benets. e data in Table 5 revealsthat the vast majority of workers surveyed do not have health insurance through their employers (89.6%), and almostthree quarters (74.6%) reported not having any type of health insurance coverage at all. An overwhelming major-ity reported that they do not get paid sick days (91.1%) or paid vacation days (83.1%). Not surprisingly, almost twothirds of the survey sample (65.2%) reported that they had worked when sick.

TABLE 5: Job Benets and Health Incidents Reported by Restaurant Worker

Employer does not provide health insurance 89.6%

Do not have any health insurance coverage 74.6%

Gone to the Emergency Room without being able to pay 24.4%

Do not get paid sick days 91.1%Do not get paid vacation days 83.1%

Have worked when sick 65.2%


e lack of job benets and health care for restaurant workers presents a real problem. Even among those restaurantworkers who do have health care, they are dependent on other family members or on the state for benets. Almostten percent (9.4%) of workers surveyed with health insurance reported being covered through a member of their fam-

What Does it Mean to Live on a Restaurant Workers Earnings?

According to the National Low Income Housing Coalition (NLIHC), while the Fair Market Rent for a two-bedroomunit in Miami-Dade County is $1,156, an extremely low-income household (earning $15,240 or 30% of the Area

Median Income of $50,800) can aord monthly rent of no more than $381. 31 On average, a restaurant workerearning the Miami-Dade median restaurant wage of $8.88 per hour can aord monthly housing costs of no more

than $462.32 For these restaurant workers to aord rent and utilities for a two bedroom at Fair Market Rent, withoutpaying more than 30% of their income on housing, their household must earn $3,853 monthly or $46,240 annually.

At $8.88 per hour, the typical restaurant worker would have to work approximately 100 hours per week in order

to aord a two-bedroom unit at the areas Fair Market rent. NLIHC determined that the Housing Wage theamount a full time worker must earn per hour in order to aord a two-bedroom unit at the areas Fair Market

rent in Miami-Dade County is $22.23. Our survey data shows that 97% of restaurant workers earn less than thisamount..


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ily and 13.2% percent reported receiving health insurance coverage from a state or federal source.

As the restaurant industrys share of the Miami-Dade economy increases, the restaurant industrys lack of healthbenets means that a growing portion of Miami-Dades workforce will not have access to health bene ts throughan employer. Whereas 24.6% of workers of color in our survey had health insurance, 31.1% of White workers did.

Even among workers who reported receiving health insurance through their employer, more than two thirds (69.1%)were not able to extend coverage to their families, though they had a median household size of three. Moreover, thefact that so few restaurant employers provide health insurance further contributes to racial stratication of healthcare access because only those with health insurance access through a family member or through a government-sponsored program can obtain it. Historically excluded communities of color and immigrants inherently have feweravenues of this sort.

In addition to having never received benets, many workers we interviewed reported that they were unable to geteven unpaid time owhen they needed it, particularly when they were sick. A server with ve years industry ex-perience told us of the risk associated with this situation. He said, I just touch food and stu for customers so if Igo in sick then I put everyone at risk of getting sick also. Despite the public health risks, almost two thirds of oursurvey sample reported working while sick (65.2%).

D. Opportunities for Advancement

Raises I dont know what youre talking about! Female, Latina, 5 years in the industry,Server and Bartender

I havent gotten any raises since I started in the corporation 5 years ago. Male, French, 10 yearsin the industry, Server

In addition to poor wages and benets, restaurant workers have few opportunities to advance in the industry (seeTable 6). Regardless of occupation, restaurant type, or length of service at a restaurant, workers reported that oppor-tunities to increase their earnings through seniority or by working their way up the industry ladder are few and farbetween. Eighty-two percent (82%) of our survey sample reported that they do not receive regular raises, and overthree fourths (77.6%) responded that they had not been promoted since starting at their current place of employ-ment. ese trends held whether a worker remained in the same place of employment or sought other opportuni-ties 74.9% of workers had not moved up from their last job when they took their current one. Moreover, 59.8% of

workers do not receive the necessary on-the-job training to be promoted.

TABLE 6: Raises and Promotions Reported by Restaurant Workers

Do not receive regular raises 82%

Have never been promoted in current job 77.6%

Did not move up in position from last job to the current job 74.9%

Did not receive necessary on-going job training to be promoted by employer 59.8%


Responses from workers that we interviewed were consistent with these ndings that promotions and raises are hardto come by in the Miami-Dade restaurant industry. A server with 7 years experience in the industry told us that atthe restaurant she works, theres no way [to be promoted], the structure is so set. eres no place to hope for pro-motions. Another server with three years industry experience argued that promotions are discouraged at his res-taurant because anyone who would ask for a promotion would be screamed at. ere are [no promotions] in therestaurant. It was known that you cannot become a server from a busboy. No changes.

Workers also cited the lack of training opportunities as a major barrier to job mobility in the restaurant industry.Food and wine knowledge is necessary for promotion from the back of the house to the front of the house, however,the back-of-the-house workers we interviewed were often not allowed to taste the wine and food. For example, aline cook with nine years industry experience told us, Pretty much front-of-the-house people would get to taste the


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wines [and] the food [but not the back-of-the-house workers]. One server with 6 years industry experience told usthat the dierence he has seen between good employers and bad employers has been the opportunity for training andgrowth. He told us the good employers give you a chance to grow up as opposed to bad employers who are undesir-able because what you are now: thats it. No future there. Cant make something else [of yourself].

A recurring theme among workers with whom we spoke was having no choice but to leave their current employ-ment in search of better jobs at other restaurants. Not only does the constant search for a better job deny workers jobstability and economic security for themselves and their families, but it also ends up costing employers in turnover-related expenses.33ese two factors lead to a no-win scenario, and greatly threaten what could be a shared economicprosperity as discussed in greater detail in Chapter III: Employers Perspectives.

E. Employment and Labor Violations

At [restaurant name 1] when I started I was getting paid around $6.50 an hour, also they would takeout a percentage out of our paychecks for broken cups, plates and so on. It wasnt too bad at [restaurantname 1] because they would give us a pretty good amount of hours even though they wouldnt pay theovertime but they would give us hours if we asked for them. At [restaurant name 2] I was supposed to

get paid a certain amount but when I looked at my paycheck they where only paying me $5.50 an hour. Male, Latino, 5 years in the industry, Cook and Waiter

At my current employer I never get paid on time, but its a family restaurant and its one of those thingswhere they come up to you and say well have it for you in a few days. Sometimes theyll just give youhalf. Female, Latina, over 5 years in the industry, cashier and Server

TABLE 7: Employment Law Violations Reported by Restaurant Workers

Experienced overtime wage violations 45.5%

Experienced minimum wage violations 21.8%

Worked othe clock without pay 27.1%

Management took share of tips 15.5%


As illustrated by Table 7, many workers reported being paid less than minimum wage and receiving no overtimepay when they worked more than 40 hours per week, in violation of both federal and state wage and hour laws. Al-most half (45.5%) of the survey sample told us they were not paid overtime for hours worked beyond the standard40-hour workweek. One worker we interviewed, a cook and server with 5 years industry experience, told us, eynever paid me overtime. ey would pay me all my hours at regular pay. So I would work 150 hours every 2 weeks,

which would be 80 hours regular and the other 70 hours is supposed to be overtime but I would get paid in regulartime. ey never, never, never paid me one cent of overtime As a matter of fact I have all my paychecks to proveit. Not to mention the 2 months I worked on getting their restaurant ready that they never paid me. A server withthree years industry experience told us that he was required to sign an illegal contract: We signed an agreement tonot ask to be paid for overtime.

Some workers we interviewed reported being paid a at rate no matter how many hours they worked, a practice com-monly referred to as shift pay. However, the Fair Labor and Standards Act mandates that if workers are scheduledfor a shorter shift and they end up working more than 40 hours per week, employers must pay overtime.34 A bar-tender with 15 years of industry experience told us, I [have] always been paid per shift since I was a bartender as akid. Absolutely [that means I was paid less than minimum wage]. And theres no benets, social security, healthcare! Forget it. A cook with 2.5 years industry experience also told us that he illegally receives shift pay: I work 48hours a week but I dont get overtime because I get paid by the day not the hour.

In the State of Florida, employers may pay as little as $4.23 an hour to tipped employees, as long as they receive


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enough in tips to make up the dierence between the tipped wage and the federal minimum wage of $7.25 per hour.If tips are insucient to bring workers up to the state minimum wage, however, employers are obliged to make up thedierence, as it is their responsibility to make sure that all tipped employees earn at least the federal minimum wageafter tips have been accounted for.35 However, many workers were not aware of their employers legal responsibilities.Only 17.8% of the survey sample knew the correct legal minimum wage of $7.25 and almost nobody recognized thecorrect tipped minimum wage of $4.23 (0.5%). is is despite the fact that employers are legally mandated to posta sign at the workplace in English and Spanish that states the correct minimum wages and the employees optionsof recourse if employers do not follow the law. More public education on laws governing the restaurant industry isneeded for workers and employers alike.

Both tipped and non-tipped restaurant workers we surveyed told us of minimum wage violations. Over seven percent(7.2%) of the worker sample earned less than $7.25 per hour, in violation of the law. A line cook in the industry for9 years told us, Well I worked at [restaurant name] so I didnt get normal minimal wage. e owner was nice butdidnt pay well, and other restaurants didnt pay well, or at all Some red people for no reason and had a veryhigh turnover [rate] ey catered to people with a lot of money and didnt pay their workers. Several workers re-ported that their wages would not be supplemented by the restaurant when tips are not enough to bring it up to $7.25an hour. A server and bartender with 5 years industry experience told us that when tips are slow, she only gets the

tipped minimum wage without any compensation from her employer to reach $7.25 an hour. She said, Especiallyback in those days when it used to be $2.13 an hour, [when there are no tips] youre literally making $2.13 an hourand thats with tax taken out. Conversely, other workers reported receiving only tips and no base wage. A cashierand hostess with two years industry experience told us Ive also heard of places [where] people go in to work. Once

you go in, they dont train you, they dont get any base or wages, only tips. e same worker also told us that man-agement steals his tips: Well at [restaurant name] I never got paid hourly, only tips. You know they give pretty goodtips. But at the end of the night you get what the owner wants to give you not the whole tip.

Over a quarter (27.1%) of our survey sample reported working othe clock without pay. A busser with 7 years in-dustry experience told us, ey clock us out without us knowing and we work there for free til three in the morn-ing. ats money that I work for that Im not receiving.

Finally, 15.5% of tipped workers reported that management was unlawfully taking a share of their daily tips a

severe burden on workers who are already being paid very low wages. A server and bartender with 5 years industryexperience told us, My worst experience was in [restaurant name], when the owners, besides just managing the pay-rolls, managed our tips with the pool system, they robbed us of our tips. A server with 8 years industry experiencetold us that, e manager was making money omy tips.

At least one worker reported having an employer who accused their workers of breakages or stealing and would de-duct costs from their paychecks as a scheme to steal workers wages. A pantry cook with 4 years industry experiencetold us how her employer would untruthfully blame the sta for missing alcohol and reduce their pay accordingly:I counted twice and twice there was no shortage. And once they claimed 5 [beers] were missing. at week I re-counted and there were 5 extra, not missing. Meaning they should not have charged us because there were more than

we thought. But they didnt care. ey never returned our money.

In a recent Miami New Times article about ve high-end restaurants that have been sued for wage violations, Dis-

trict Director for the US Department of Labors Wage and Hour Division Will Gamitz was quoted saying, Miamiis one of the most challenging places for enforcing federal wage law, citing the large immigrant community as acontributing factor to this alarming situation.36 He further stated that many Miami employers pay their stacom-pletely in tips, keep part of those tips, or simply dont pay employees for their hours.37 In a city where wage theft isa major problem, according to a recent report citing Department of Labor Wage and Hour Division data, the most

wage and hour violations were documented for workers in the Accommodation and Food Services sector. 38

ese experiences illustrate the importance of qualitative studies in industries such as the restaurant industry, whichare not closely regulated and rely heavily on informal employment arrangements. Many such workplace practices arenot reported to government agencies or industry associations.


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Immigrant Workforce

Three out of every ve workers in our restaurant worker sample were born in another country (58.1%). Almost half(44.4%) of these immigrant workers reported that they did not have legal status to work in the United States. Their

actual proportion in the restaurant workforce is likely even higher given the possible reluctance of workers to reporttheir immigration status or o the books employment. Despite the legal implications of the 1986 Immigration

Reform and Control Act (IRCA),39 which made it illegal for employers to knowingly hire or recruit immigrants whodo not possess lawful work authorization and required employers to attest to their employees immigration status,

many employers with whom we spoke told us that undocumented immigrants are widely employed in the industry.

Various reports and news stories conrm that the restaurant industry provides an entry-point for undocumentedworkers, particularly because of the opportunities to earn cash by the hour even when earnings are below federal

and state mandated minimum wages.40 Census data is unlikely to capture the earnings of these workers.

Bernex Alexis

Haitian-American, 29 years old, 4 years in the industry, server, pool attendant

Bernex Alexis is a 29-year-old restaurant worker of Haitian descent who as born and raised in Miami. He worked

for four years at one of the most exclusive island country clubs in Miami both as a server and a pool attendant. Hetold us of his struggles there with tip theft and other low-road practices that he experienced as a Haitian restaurant

worker.

Alexis told us that when he rst started working at the country club, I found out from other associates that my

supervisor at the time wasnt telling me everything. As a server, I was getting tips but [my managers] were trying to

take everything for themselves. I was mad because of the fact that they told me [that] the rst two weeks is eventstraining so we [werent] getting tips. So I went in thinking that its something that happens within the rst week.

Some jobs [have] paid training, [and at] other jobs theres unpaid training. And with that being my rst restaurantjob, I had no knowledge [and assumed this was unpaid training]. When I found out [that I was entitled to keep my

tips] I was upset. I found out from the HR [human resources] director because she asked me, Hows everything?How are the tips coming along? And thats when I told her [I was not receiving my tips]. And she said, No, itsnot like that. Whatever tip you get, just keep a record of it and you should get that every two weeks when you get

paid. So thats how I found out.

Alexis told us that unfortunately this illegal practice of wage theft is common to other

experiences he has had in the hospitality industry: When I was a doorman at the hotel,we got tips for certain things. When we try to pitch certain things to a customer or guest

and they would go for it, the manager would be there and he would want a piece of the

pie. We question, Why is that? But theyre demanding it too! [They would say,] This ismy half this is yours. And were saying, But you didnt work hard for it. Youre making

a lot more than us. Were trying to make everything that we can. He explained that itwas similar to when he was serving at the country club where whatever manager was

there was the one that wanted their cut.

Alexis also expressed his frustration with what he feels is discriminatory treatmentat the country club: Every year they do employee evaluations. I was told from other

employees that thats when they got their raises. I didnt get oered a raise until year

four when I told them that I was about to leave. But another guy told me he got a raiseevery year. He was Cuban or Puerto Rican. They got better treatment than the Haitians

or the Jamaicans. When asked if he personally felt mistreated due to his race, Alexisanswered, Yes, [from] the pool boy manager. There would be times when I was ready

to go in and do my job but then something would happen and I would just get a senseor vibe that everything was not going to be okay [from the managers behavior towards

me]. And I just tried to do the job the best that I can. I saw thats the way it was for the

[mostly Haitian] cooks too. Alexis asserted, There needs to be equal treatment..


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F. Health and Safety Violations

I broke mynger because something wasnt supposed to be there. Male, 10 years in the industry,Server

I had an accident where I cut my hand and I had to go to the hospital. Male, Latino, 5 years inthe industry, Server and Cook

I guess [the kitchen] is not really safe. Hot stuaround and the chef s stuaround. And stumight bebroken but they still want you to use it. At [restaurant name] for example they had a juice machine thatwas really old and they needed to replace it but they wanted us to reuse it You had to stick your handin the machine, it was dangerous. Male, Turkish, 5 years in the industry, Server

Our survey data also revealed that restaurant workplaces commonly do not employ or enforce regulations designed toensure the health and safety of workers, in violation of the federal Occupational Safety and Health Act (OSHA). 41

TABLE 8: Health and Safety Violations Reported by Restaurant Workers

Unsafely hot in the kitchen 34.5%

Fire hazards in the restaurant 18.1%

Missing mats on the oor to prevent slipping 18.3%

Missing guards on cutting machines 25.7%

Done something that put own safety at risk 41.7%

Did not receive instruction or training about workplace safety 31.7%


As shown in Table 8, 34.5% of the survey sample reported that it gets unsafely hot in the kitchen where they work.Signicant numbers of workers reported re hazards such as blocked doors or non-functioning re extinguishers inthe restaurant where they worked (18.1%), as well as absence of guards on the cutting machines (25.7%), and mats

on the

oor to prevent slippage (18.3%). Over forty percent (41.7%) reported having done something at work thatput their own safety at risk. Despite the prevalence of health and safety hazards in restaurant workplaces, almost athird of workers (31.7%) told us they did not receive health and safety training from their employers. A server in theindustry for 5 months observed about his restaurant, Sometimes there is ooding in the kitchen, which I have al-most slipped on at times. In the kitchen there [are] protruding metal corners [that] people bang their heads on.

Taking bread in and out of the bread oven, you get burned.

TABLE 9: Workplace Injuries Reported by Restaurant Workers

Burned while on the job 43.7%

Cut while on the job 42.6%

Slipped and injured while on the job 17.9%

Came into contact with toxic chemicals while on the job 21.7%

Have chronic pain caused or worsened by the job 17.7%


Table 9 demonstrates that on-the-job injuries are pervasive in Miami-Dade restaurants. Over forty percent (42.6%)of the survey sample had suered work-related cuts on at least one occasion, 43.7% had been burned on the job, and21.7% had come into contact with toxic chemicals. Almost eighteen percent (17.9%) reported that they had slippedand injured themselves while at work. Additionally, 17.7% reported chronic pain that was caused or worsened bytheir job. A server with 8 years industry experience told us that the sprays and cleaning products make me sick andI cant complain [about them to management]. Another server with 3 years of industry experience also complainedabout the chemicals: When it comes down to washing dishes they wont have the proper things around no gloves.


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And when youre doing it barehanded, you can tell that the chemicals are aecting your hands. A server and cookwith 5 years in the industry told us, We had to do a lot of heavy lifting and we didnt use a back brace or glovesor any support whatsoever. Also when we had to change the beer kegs they wouldnt even supply us a cart to movethem around. As a matter of fact, a coworker hurt his back and so did I. A server and bartender with 5 years of in-dustry experience told us, Not being able to take breaks, working too many hours [makes] your waist hurt. Exces-sive tiredness from working 10-12 hours straight without break [makes] your immunity go down. Being in unsafe

working conditions, like wet oors, sharp things. I recently cut myself on a fridge. It was rusty because its old. Ihave a scar.

TABLE 10: Workplace Practices Reported by Restaurant Workers

Worked when the restaurant was understaed 78.7%

Performed several jobs at once 81.3%

Experienced verbal abuse from supervisors 22%

Performed a job not trained for 45.5%

Done something that put own health and safety at risk 41.7%

Done something due to time pressure that might have harmed the health and safety of customers 33.9%


Table 10 reveals that understang, which places inordinate pressure on workers, is a common industry practice. Anoverwhelming majority of respondents reported working when their restaurant was understaed (78.7%), and a simi-lar number said they have performed several jobs at once (81.3%). Almost half of workers responded that they havebeen required to perform jobs for which they had not been trained (45.5 %), and two out of ve workers reported

working in a manner that put their own safety at risk (41.7%). And, as previously discussed, almost two-thirds ofworkers worked while sick (65.2%). Such low-road workplace practices not only aect workers, but can also have se-rious consequences for consumers. Over a third of workers reported doing something that might have put the healthand safety of the customer at risk as a result of time pressure.

Health and Safety Laws

The federal Occupational Safety and Health Act (OSHA) imposes standards for health and safety in the workplace,requiring employers to provide protection for workers in hazardous environments and to keep records of all

workplace injuries and accidents. OSHA covers toxic chemical use the statute requires gloves, for example, for

dishwashers and kitchen cleaners who use very heavy toxic chemicals and temperature of work environments,including excessively hot kitchens.42 While there is no mandatory requirement that employees be provided with

specic health and safety training, such training is eectively necessary to ensure compliance with OSHA andworkers compensation law.

Employers in the State of Florida must secure workers compensation insurance for every employee. Florida

Workers Compensation law also stipulates that, provided the employer is informed of any workplace accidentwithin 30 days, workers related medical expenses will be fully covered.43

G. Many bad jobs, a few good jobs

You dont really feel like your job is secure. You always feel like you might have to leave at any time be-cause you dont feel that power. Male, Turkish, 5 years in the industry, Server

Analysis of our data revealed the existence of not only the low-road practices described above, but also of signicantassociations between workers earnings, benets and workplace conditions. Since so many of the jobs in the restau-rant industry are long-term, with the average length of time spent in one restaurant equaling 2.2 years, and 18.8%


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of the survey sample working in their current restaurant for three years or more, we cannot dismiss poor workingconditions as a temporary situation for these workers. For many workers, especially workers of color and immigrant

workers, restaurant jobs are long-term. More than four out ofve workers (82.3%) who reported working in theircurrent restaurant for six or more years were immigrants.

e interviews conducted with workers are consistent with these ndings of our survey research that show the preva-lence of low-road employers and the impetus of workers to move from job to job due to bad conditions. One server

with 10 years industry experience told us, I rarely hear of a place thats great to work at though because there arealways those inside stories, and how the money is not great, or how they f** you over with the section they give you[or] really crappy scheduling. A server and bartender with 5 years industry experience told us, All my friends [inother restaurants] are suering the same [bad] working conditions.

A server with 5 years industry experience told us, People really complain a lot. Not one, not two, a lot of peoplecomplain. ey work and work and then nd somewhere else to work. ats why you never see people work therefor more than 3 months. So nobody stays and gets a better position or anything like that. Another server, also with5 years industry experience, expressed his frustration about not knowing how an employer treats employees untilafter the fact. He asked us, Wouldnt it be cool if they made a little booklet of who its bad to work for so you wouldknow?

Our research shows that when workers receive low wages and experience a lack of promotions and benets, theyfrequently encounter a large number of additional poor workplace practices, creating an industry of many bad jobsand few good jobs (see Table 11). Specically, our data demonstrates44:

Workers earning wages below the poverty line are less likely to receive important workplace ben-ets, such as employer provided health insurance.

Workers earning wages below the poverty line are also more likely to have performed jobs withoutreceiving the necessary training.

Workers earning below the poverty line are less likely to receive regular raises and promotions.

Workers in the lowest wage category are more likely to suer overtime violations than workersearning livable wages. More than four fths (83.3%) of workers earning less than minimum wageand working over 40 hours a week reported overtime pay violations, compared to less than half(41.2%) of workers working 40 hours a week in livable wage jobs.

Workers earning wages below the poverty line were more likely to have done something under timepressure that might have harmed the health and safety of the consumer.


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TABLE 11: Conditions Reported by Restaurant Workers by Wage Group

Conditions Reported by RestaurantWorkers

Workers Earning Wages Below Pov-erty Line

Workers Earning WagesAbove Poverty Line

Do not get regular raises 87% 78.9%

Do not have any health insurancethrough their employer.

93.4% 87.0%

Have not been promoted in current

place of employment83.5% 73.7%

Have not moved up in position from

last place of employment to current79.9% 71.6%

Have done a job not trained for 51.2% 41.7%

Have done something due to time pres-sure that might have harmed the health

and safety of the customer

40.2% 29.8%


While the number of jobs available in the restaurant industry is growing, our survey data and interviews with work-ers demonstrate that the industry is plagued by a number of serious problems. Presently, most of the jobs being gen-erated by the industry are bad jobs characterized by low wages, few benets, few options for upward mobilityand illegal workplace conditions. According to workers testimonies and the results from our survey data, good jobs those with higher wages, benets and somewhat less onerous working conditions are few and far between. Such

jobs do exist, thereby demonstrating that it is possible to pay workers a livable wage and remain in business. As willbe further outlined in Chapter V: Segregation & Discrimination, it is largely workers of color and immigrants whoare exposed to these bad jobs, while Whites disproportionately benet from the few good ones. Our interviews

with employers, discussed in the following chapter, identify some of the factors impacting workplace conditions andpractices, and provide guidance for addressing these impediments to the industrys ability to provide a plethora ofgood jobs to Miami-Dades workforce.


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Juan Diego Guerrero

Peruvian, 32 years old, 5 years in the industry, server, dishwasher

Juan Diego Guerrero is a 32-year-old restaurant worker who began hisrestaurant career ve years ago as a dishwasher and is currently employed

as a server in a casual dining restaurant in Miami. Originally from Peru,

Guerrero moved to America 10 years ago, and has lived in both Miami andNew York. He is married and spends his free time practicing yoga.

Overall, Guerrero described the treatment that he receives at his

restaurant as disgusting. He asserted that this is because he is one ofonly three Latino servers and that management is racist. I know it. The

restaurant owner and the chef are White immigrants, the owner Germanand the head chef Irish. Guerrero described how the head chef creates an

antagonistic environment by screaming and cursing at the workers. Itsnot only my personal opinion. Hes just mean. A mean person. The chef

will unfairly discipline him: If I put the codes for the orders he says, Why

dont you use the name? And when I put the name, hed ask for the code.

Its impossible to please him. While yelling at him, He never looks mein the eye. He treats me like a piece of s**t. Guerrero elaborated thatduring a typical shift, the chef is calling [us] names. Hes always making

fun of me, the way I speak English. Guerrero is cursed at regularly and

has been called a f**king donkey. Despite the workers complaints to the owner, the disparaging comments anddiscrimination continue, creating an implicit sense of inequality within the restaurant.

In addition to the hostile work environment Guerrero endures, there is a lack of clarity in the compensation he

receives for his work. He makes $4.23 an hour plus tips, but there is a lack in understanding of how exactly the tipsare being distributed. With this lack of clarity on the distribution, the workers are concerned that the management

is playing with the numbers. He also described stories of restaurant worker friends who dont get paid. Theyare afraid.


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C H A P T E R IVEmployers Perspectives

behind the kitchen door: the social impact of inequality in miami’s growing restaurant industry

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