I'm fascinated that the only source for the 4$/hour + tips is a tweet. As far as I can tell, that's it. In fact, the article doesn't even make the claim, just republishes the tweet.
The Sonic statements says no wage have decreased, but this is not pointed out, fact-checked or commented on.
Real good journalistic work.
And to be honest, the strategy works. The fact that it (hopefully temporarily) cracked HN's frontpage is testament to that.
It looks like they reclassified their employees. The Ohio state min wage is $8.55/hr for employees, but if your employees can get tips, you only need to pay $4.30/hr.[0]
Proof collective action works. The PR was so bad, corporate stepped in and and exercised their right to forcibly acquire the locations in question back from the franchisee. The workers have been offered their jobs back as well.
“Additionally, with the ownership change, employees may now have their paycheck direct deposited and general managers are now eligible for a new bonus program, among other benefits.”
That’s not how I read it. What I read is that the entire story is wrong, no one’s pay is cut, and the reason these signs were posted is unclear. What am I missing?
The source article linked to in the op says different
“One anonymous source close to management stated: “Circleville, Lancaster, and Grove City crews have all walked out and quit after the franchise was bought out by corporate. The regional director, two district managers and four general managers have all been let go. All of which have been working for the company in management for 7+ years.”
Sonics updated statement was that pay was actually not changed
Pretty fucked up if you think about it. In order to circumvent minimum wage laws, they reclassified their employees as tipped employees, thus exempting them from having to pay state minimum wage. These types of practices are common in third world countries. It would seem the US has dropped from a developed nation to a developing one. This is also further proof that a minimum wage doesn’t work. The free market should decide the fair market value of a laborer.
I'm not sure about Ohio but I thought the rule was that you were obligated to pay out the difference if tips don't make them go to minimum wage.
So was this policy from the new owners just a way to slightly reduce costs. From any tips the employees got? Do fast food workers get tips? It seems.... so cheap.
> the rule was that you were obligated to pay out the difference if tips don't make them go to minimum wage
That is the rule but, practically speaking, the fastest way to get permanently fired and more-or-less blackballed from ever working in foodservice again is to complain to management (and, worse, the government) about getting shorted on wages due to low tips. So few people do it if they need the job.
If you were making $8 plus tips before, and now you’re making $4 plus tips or $8 (whichever is higher), then you’re still being paid $4 less per hour in any hour when you make at least $4 in tips. Because your first $4 of tips is going to bring your wage up to $8 instead of being on top of the $8.
So it’s legal (if the employer actually holds to it) but it still screws over the employees and they still have every right to be pissed.
[+] [-] norswap|7 years ago|reply
The Sonic statements says no wage have decreased, but this is not pointed out, fact-checked or commented on.
Real good journalistic work.
And to be honest, the strategy works. The fact that it (hopefully temporarily) cracked HN's frontpage is testament to that.
[+] [-] 0x8BADF00D|7 years ago|reply
[0]https://www.com.ohio.gov/documents/dico_2019Minimumwageposte...
[+] [-] WalterGR|7 years ago|reply
[+] [-] unknown|7 years ago|reply
[deleted]
[+] [-] massivecali|7 years ago|reply
[+] [-] toomuchtodo|7 years ago|reply
“Additionally, with the ownership change, employees may now have their paycheck direct deposited and general managers are now eligible for a new bonus program, among other benefits.”
[+] [-] NoblePublius|7 years ago|reply
[+] [-] kirykl|7 years ago|reply
“One anonymous source close to management stated: “Circleville, Lancaster, and Grove City crews have all walked out and quit after the franchise was bought out by corporate. The regional director, two district managers and four general managers have all been let go. All of which have been working for the company in management for 7+ years.”
Sonics updated statement was that pay was actually not changed
[+] [-] anm89|7 years ago|reply
Great to hear that this actually led to them getting better treatment.
[+] [-] thelasthuman|7 years ago|reply
The key is to give the working class the slightest bit of hope to cling onto.
People will accept lots of abuse if they think there is still a chance of making it in life if they obey their masters.
[+] [-] 0x8BADF00D|7 years ago|reply
[+] [-] perfmode|7 years ago|reply
Furthermore, in the United States, what we have doesnt even resemble a free market.
[+] [-] ohannanxis|7 years ago|reply
[+] [-] HaloZero|7 years ago|reply
So was this policy from the new owners just a way to slightly reduce costs. From any tips the employees got? Do fast food workers get tips? It seems.... so cheap.
[+] [-] techsupporter|7 years ago|reply
That is the rule but, practically speaking, the fastest way to get permanently fired and more-or-less blackballed from ever working in foodservice again is to complain to management (and, worse, the government) about getting shorted on wages due to low tips. So few people do it if they need the job.
[+] [-] cimmanom|7 years ago|reply
So it’s legal (if the employer actually holds to it) but it still screws over the employees and they still have every right to be pissed.
[+] [-] cdurth|7 years ago|reply
[+] [-] foota|7 years ago|reply
1. Restaurant ownership changed 2. New owners set wages at min(4 + tips, 8) instead of 8 + tips. 3. Staff quit
Technically, the minimum amount earned didn't change, but they'd be making less if they got any tips?
[+] [-] tyingq|7 years ago|reply
[+] [-] gesman|7 years ago|reply
However - better wait for the full and well-researched story to follow ...
[+] [-] unknown|7 years ago|reply
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