This report presents the results of a survey conducted by ORC International on behalf of the National Consumers League (NCL) among 1,024 American adults. The study was intended to examine the views of Americans regarding the fairness with which restaurant workers are treated when it comes to benefits and pay. The findings: Consumers feel strongly that restaurant employees should not work while sick and, to a lesser extent, should be provided with paid sick days by the restaurant.

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WAGE THEFT IN THE RESTAURANT INDUSTRY SURVEY
SUMMARY OF KEY FINDINGS
January 15, 2013
This report presents the results of a survey conducted by ORC International on
behalf of the National Consumers League (NCL) among 1,024 American adults.1
The study was intended to examine the views of Americans regarding the fairness
with which restaurant workers are treated when it comes to benefits and pay.
Consumers feel strongly that restaurant employees should not work while sick and,
to a lesser extent, should be provided with paid sick days by the restaurant.
• Nearly all Americans (92%) believe it is “very important” or “important” that
the servers and cooks in restaurants do not cook or serve while sick.
• Over half (57%) feel it is “very important” or “important” that the restaurants
they eat in provide their workers with paid sick days.
o This is particularly true of females, 66% of whom believe in the
importance of paid sick days versus 48% of males.
o The belief is also more prevalent among those with a high school
education or less (62%) as opposed to college graduates (52%).
When it comes to wages, Americans firmly believe in the importance of fair pay for
restaurant workers.
• Eight in ten (82%) say it is “very important” or “important” that the full tip left
for their server goes to the waiter or waitress who served them.
o Those with household income of less than $75K are significantly more
likely to feel this way than their wealthier counterparts with income of
$75K or more (85% vs. 75%, respectively).
o Differences also exist by educational level, with 84% of respondents with
a high school education or less rating this statement “very important” or
“important” as opposed to 77% of college graduates.
1
This study was conducted via ORC International’s Telephone CARAVAN®
Survey among a national sample
of 1,024 adults from December 13-16, 2012. The margin of error for the sample of 1,024 is +/- 3 percent at
the 95% confidence level. Smaller sub-groups have a higher sampling error. The survey was commissioned
by the National Consumers League (NCL).

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WAGE THEFT IN THE RESTAURANT INDUSTRY SURVEY ORC# 721508/74350
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• Roughly this same proportion (78%) believe it is “very important” or
“important” that the restaurants they eat in pay their workers fairly for the
wages that are owed.
o Females (82%) are significantly more inclined to feel this way than males
(73%).
o Lower income households of less than $75K are also more likely to
believe in the importance of fair wages versus higher income households
of $75K or more (80% vs. 71%, respectively).
A majority of Americans are not aware that leaving credit card tips might result in
servers not getting the full amount. With this knowledge, consumers indicate they
would be more likely to provide tips in cash.
• Two in three Americans (66%) did not realize that their server might not
receive their full tip if left on a credit card.
o Consumers from lower income households are more likely to lack this
knowledge (68% said they did not know vs. 59% of those with income of
$75K or more).
o Lack of awareness is also more prevalent among those with a high
school education or less (71%) as opposed to college graduates (59%).
• Knowing that restaurant management might take a portion of tips left on
credit cards but not a portion of tips left in cash, an overwhelmingly majority
(89%) would be more likely to leave their tip in cash.
o While nearly all demographic subgroups are in equally strong favor of
leaving tips in cash, females (91%) are more inclined than males (86%)
to say they would do same.
Support of fair payment for restaurant workers is again evident in Americans’
approval of punishment for restaurant owners who engage in illegal wage practices,
as well as their agreement of the need for an increase in the federal tipped
minimum wage.
• Nearly all Americans (94%) “strongly agree” or “agree” that restaurant
owners who withhold a portion of employees’ wages illegally should be fined
or punished in some way.
o While agreement is high across all demographic subgroups, females
(97%) are significantly more likely than males (92%) to express support
of this statement.

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• Close to nine in ten consumers (87%) “strongly agree” or “agree” that the
federal tipped minimum wage of $2.13 an hour should be increased.
o Women (92%) are much more likely than men (82%) to support an
increase in the federal tipped minimum wage.
o The same holds true for lower income groups of less than $75K; 90% of
these individuals agree an increase is needed, compared to 82% of
those with household income of $75K or more.
o Support is also higher among respondents with lower education levels:
90% of non-college graduates agree the federal tipped minimum wage
should be increased, as opposed to 80% of those with a college
education or higher.
Awareness of “employee misclassification” is low, described to respondents as “a
form of payroll fraud in which an employer intentionally classifies workers as
‘independent contractors’ instead of ‘employees’ in order to deprive workers of their
workplace protections and defraud state and federal treasuries out of income
taxes”.
• Two in three Americans (65%) have not heard of employee misclassification.
o Awareness of this term is substantially lower among females, 71% of
whom have not heard of it versus 59% of males.
o Lack of awareness decreases with education: 72% of those with a high
school education or less have never heard of the term, compared to 63%
of respondents with some college education and 55% of college
graduates.
Once familiarized with the concept of “employee misclassification”, Americans
express strong views against it, including support for punishment of the companies
that engage in this practice.
• Nine in ten consumers (90%) “strongly agree” or “agree” that it is important
that companies do not misclassify workers as independent contractors in
order to prevent workers from receiving minimum wage and paid overtime.
o Agreement is higher among women, with 93% agreeing with the
statement versus 87% of men.
• According to 93% of Americans who express agreement, companies that
intentionally misclassify workers as independent contractors in order to
dodge paying minimum wage, overtime, workers compensation and taxes
should be fined or punished.
o Once again, females are more inclined to say they “strongly agree” or
“agree” with fines or punishment (95% vs. 90% males).

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• Nearly all consumers (96%) are in agreement that workers should be clearly
informed in writing that they have been classified as independent contractors
at the beginning of employment.
o Agreement is universally high among all demographic subgroups.

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TOPLINE RESULTS
On another subject…
N1 Please tell me how important each of the following are to you personally when you go out to
eat at a restaurant. For each statement I read, please tell me if it is very important,
important, somewhat important, not important, or not a consideration.
[RANDOMIZE ITEMS]
(N = 1,024)
Very
important/
Important
(Net)
Very
important Important
Somewhat
important
Not
important
Not a
consider-
ation
DON’T
KNOW
(Vol)
That the restaurants you
eat in pay their workers
fairly for the wages that
are owed
78% 49% 28% 9% 5% 7% 2%
That the servers and cooks
in restaurants do not cook
or serve while sick
92% 78% 14% 3% 2% 2% 1%
That the restaurants you
eat in provide their
workers with paid sick
days
57% 32% 25% 14% 14% 13% 2%
That the full tip you leave
for your server goes to the
waiter or waitress who
served you
82% 58% 24% 10% 4% 3% 1%
N2 Did you know that your server might not receive their full tip if you leave it on your credit
card?
(N = 1,024)
29% YES
66% NO
1% MAYBE
4% DON’T KNOW

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N3 If you knew that restaurant management might take a portion of tips left on credit cards but
does not take a portion of tips left in cash, would you be more or less likely to leave your tip
in cash?
(N = 1,024)
89% MORE LIKELY
6% LESS LIKELY
4% NO CHANGE
1% DON’T KNOW
N4 Please tell me how much you agree or disagree with the following statements. Do you
strongly agree, agree, disagree or strongly disagree?
[RANDOMIZE ITEMS]
(N = 1,024)
Strongly
Agree/
Agree
(Net)
Strongly
agree Agree Disagree
Strongly
disagree
DON’T
KNOW
(Vol)
Restaurant owners who withhold a
portion of employees’ wages
illegally should be fined or punished
in some way
94% 67% 27% 3% 2% 1%
The federal tipped minimum wage
of $2.13 an hour should be
increased
87% 56% 31% 7% 2% 4%
N5 Have you heard of ‘employee misclassification’—a form of payroll fraud in which an
employer intentionally classifies workers as ‘independent contractors’ instead of
‘employees’ in order to deprive workers of their workplace protections and defraud state and
federal treasuries out of income taxes?
(N = 1,024)
32% YES
65% NO
<1% MAYBE
2% DON’T KNOW

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N6 Please tell me how much you agree or disagree with the following statements. Do you
strongly agree, agree, disagree or strongly disagree?
[RANDOMIZE ITEMS]
(N = 1,024)
Strongly
Agree/
Agree
(Net)
Strongly
agree Agree Disagree
Strongly
disagree
DON’T
KNOW
(Vol)
It is important that companies do
not misclassify workers as
independent contractors in order to
prevent workers from receiving
minimum wage and paid overtime
90% 61% 29% 5% 3% 2%
Companies that intentionally
misclassify workers as independent
contractors in order to dodge paying
minimum wage, overtime, workers
compensation and taxes should be
fined or punished
93% 63% 30% 4% 2% 2%
Workers should be clearly informed
in writing that they have been
classified as independent
contractors at the beginning of
employment
96% 70% 26% 2% 1% 1%