Markets should set wages. When govenment sets the wage rate too high we have too many workers looking for non-existent jobs.
But can't we all agree that "tipped" workers are getting shafted?
Since 1966, a sub-section of the minimum wage has existed for people who work for gratuities, known as the "tipped minimum wage," which Congress last bumped to $2.13 per hour in 1991. About half of all states allow restaurants to pay servers $2.13, provided they make up the difference if the server doesn't reach the standard minimum wage after tips.
Essentially these workers are being subsidized by diners. When workers can't make ends meet, taxpayers subsidize their food stamps.
In 1996, President Bill Clinton pressured Congress to raise the minimum wage for the first time in years. He ultimately got House Republicans on board with the wage hike, but not without a significant caveat. The restaurant industry, led by the National Restaurant Association -- and its board chairman Herman Cain, who would later become the group's president -- successfully pressured lawmakers to have the minimum wage for tipped employees separated from the increase and kept at $2.13.