Strictly speaking, this isn’t true throughout the entire US. Wait staff in Washington, for example, get paid the full state minimum wage, and the minimum wage act explicitly requires that tips be paid to employees rather than retained by the restaurant. Of course, actual practice or compliance can differ, but there are a few states with better laws than the norm.
I appreciate the added details. As far as I’m aware, they aren’t keeping the tips. But it is legal to pay a tipped employee down to about $2/hr in every state. So most places like Sonic will reduce your pay when you get tips and you claim the tips (which you’re required to do wink wink). So rather than Sonic just paying their employees $10/hr at minimum wage, they’ll pay them $5/hr assuming $5 in tips. Saves the company money and the servers don’t make much more than normal minimum wage while the customer fronts their wages.
I feel like how you’re describing it makes it sound more complicated than it is.
All employees are required to make minimum wage.
If your tips don’t take you over minimum wage, your employer has to pay the difference.
So tips given before you get to minimum wage just reduce how much your boss needs to spend to make up the difference. Once you get there, your boss has to pay you at least some very small quantity and the tips increase your take-home
It’s a stupid system and exploitative, but it’s not as “wink wink nudge nudge” as you made it sound.
Thats fair but I don’t think this description is entirely accurate either. And I do think it’s a big scummy because minimum wage is already very low. So putting employees tips into their wages is just employers taking advantage. It’s legal, yes, but it’s bad for everyone except the employer.
not in every state. in Washington, my home state, there’s no such thing as a tipped wage and employers must pay all tips to employees. does this always happen? no, but it is illegal unlike what you’re claiming
Strictly speaking, this isn’t true throughout the entire US. Wait staff in Washington, for example, get paid the full state minimum wage, and the minimum wage act explicitly requires that tips be paid to employees rather than retained by the restaurant. Of course, actual practice or compliance can differ, but there are a few states with better laws than the norm.
I appreciate the added details. As far as I’m aware, they aren’t keeping the tips. But it is legal to pay a tipped employee down to about $2/hr in every state. So most places like Sonic will reduce your pay when you get tips and you claim the tips (which you’re required to do wink wink). So rather than Sonic just paying their employees $10/hr at minimum wage, they’ll pay them $5/hr assuming $5 in tips. Saves the company money and the servers don’t make much more than normal minimum wage while the customer fronts their wages.
Isn’t that lovely?
I feel like how you’re describing it makes it sound more complicated than it is.
All employees are required to make minimum wage.
If your tips don’t take you over minimum wage, your employer has to pay the difference.
So tips given before you get to minimum wage just reduce how much your boss needs to spend to make up the difference. Once you get there, your boss has to pay you at least some very small quantity and the tips increase your take-home
It’s a stupid system and exploitative, but it’s not as “wink wink nudge nudge” as you made it sound.
Thats fair but I don’t think this description is entirely accurate either. And I do think it’s a big scummy because minimum wage is already very low. So putting employees tips into their wages is just employers taking advantage. It’s legal, yes, but it’s bad for everyone except the employer.
not in every state. in Washington, my home state, there’s no such thing as a tipped wage and employers must pay all tips to employees. does this always happen? no, but it is illegal unlike what you’re claiming