Dealers’ wages stay as is
Casinos are getting back to full – or at least greatly increased – capacity across the United States and with that comes the need to staff back up. To help fill its roster, Rivers Casino Pittsburgh is guaranteeing a $15 per hour minimum wage for non-tipped employees. That means people like housekeeping staff, front desk employees, but not poker and blackjack dealers.
The casino has about 1,300 people on staff, around 400 of whom fall into the “non-tipped” category. The reason Rivers Casino is not guaranteeing $15 per hour for the tipped employees is because it says they already make more than that once their tips are taken into account. Full-time dealers, according to the casino’s parent company Rush Street Gaming, average $45,000 to $50,000 in income in their first year.
“It’s the right thing to do”
And while the main reason for the upped hourly pay is likely to attract applicants, the company says that’s not the only reason.
“We believe that paying a living wage is more than a recruitment strategy — it’s the right thing to do,” said Greg Carlin, CEO of both Rivers Casino and Rush Street Gaming. “Our team members are committed to our success each and every day. This is just another way we return that commitment.”
Bud Green, assistant general manager of Rivers Casino Pittsburgh, told TribLive.com, “We offer job candidates family-sustaining wages, great benefits and a diverse, equitable, and inclusive workplace culture.”
Rivers Casino won’t be the only Rush Street property to increase its minimum wage to $15. The company plans to roll it out to all of its casinos unless there is a labor agreement in place that would prevent it.
Minimum wage front of mind in the US
Minimum wage has been a hot-button topic in the United States over the past year, as the COVID-19 pandemic and associated job losses have shown just how vulnerable hourly wage workers in this country are. There has been a significant push – mainly from Democrats and political left – to increase the federal minimum wage to $15. The current federal minimum wage is just $7.25, last raised in 2009.
Taking into account inflation, $7.25 in 2009 is the equivalent of $8.81 today. Minimum wage had its highest purchasing power in 1968 when it was $1.60, which would be $12.27 today.
According to CNN, 29 states have set the minimum wage higher than $7.25 and 45 individual cities have higher minimum wages than their states. California has the highest minimum wage (for companies employing at least 26 people) at $14. Washington, D.C., not technically a state, has a minimum wage of $15.
While a $15 minimum wage still adds up to very little over the course of the year (and is a pittance in many high cost of living cities), the current $7.25 is insultingly inadequate for someone to live on in the year 2021. Working 40 hours per week, someone on the federal minimum wage would make just $15,080. Somehow, that’s not actually below the poverty line of $12,880, but as soon as someone has a kid, the federal poverty line is bumped up to $17,420.
Republicans and political Conservatives argue that increasing the minimum wage would hurt businesses – particularly small business – as they would have to pay more to their employees. This, they say, would lead to job cuts, putting more people in the unemployment line. Proponents of increased minimum wage point to the obvious benefit of giving people more money to live, which would naturally help people get by in life. Those in favor of the higher minimum wage also argue that it would boost morale and productivity, reduce absenteeism, and allow employers to find the best candidates for the job. Plus, when people make more money, they will spend more money, much of it at those small businesses.
