Share of potentially transferred tips that will be transferred, by state groups
| States without more protective state laws and not in the Fourth or Tenth Circuit | States with more protective state laws | Tenth Circuit states without more protective state laws | Fourth Circuit states without more protective state laws | |
|---|---|---|---|---|
| Share of potentially transferred tips that will be transferred | ||||
| Low estimate | 4.1% | 0% | 0% | 2.05% |
| Preferred estimate | 43.91% | 2.05% | 0% | 21.95% |
| High estimate | 100% | 4.1% | 0% | 50.0% |
Note: The 43.91% in the first column is the ratio of transferred tips to potentially transferred tips in those 28 states, calculated using CPS microdata.
The 15 states with more protective state laws are California, Delaware, Illinois, Kentucky, Minnesota, Montana, Nevada, New Hampshire, New York, North Carolina, North Dakota, Pennsylvania, Utah, Washington, and Wyoming. The four states in the Tenth Circuit without more protective state laws are Colorado, Kansas, New Mexico, and Oklahoma. The four states in the Fourth Circuit without more protective state laws are Maryland, South Carolina, Virginia, and West Virginia. The remaining 28 states (including D.C.) do not have more protective state laws and are not in the Fourth or Tenth Circuit.
Source: EPI analysis of IRS W-2 data, Table 5.A; BLS Quarterly Census of Employment and Wages; Census 2016 Service Annual Survey, Table 2; Exhibit 4.1 in Michael Lynn, “Should U.S. Restaurants Abandon Tipping? A Review of the Issues and Evidence,” Psychosocial Issues in Human Resource Management vol. 5, no. 1 (2017), 120–159; Current Population Survey microdata; and relevant state laws and federal circuit court cases