A new brief issued by the Center for American Progress (CAP) announced that states with "one fair wage" have lower poverty rates. States who are known as having "one fair wage" are those that pay all tipped, disabled, and temporary teenage workers the same minimum wage as all other workers. States that do not pay all workers the same are states that observe a subminimum wage, or a wage that legally allows employers to pay tipped, disabled, and temporary teenage workers less than other minimum wage workers.

This study from CAP also found that overall, businesses in tipped industries experience higher employment growth in states with one fair wage. Small businesses in these states also saw faster employment growth. More importantly, the study points out that marginalized people such as women and people of color are overrepresented in tipped industries. Additionally, disabled workers are paid less based on disability status under a subminimum wage. These facts suggest that social inequity resulting from poverty may also be partially addressed by abolishing the subminimum wage and ensuring that all states pay one fair wage to all their workers.

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