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jeromec | 14 years ago
Not true. That's why we have federal minimum wage laws. If the wait staff are actually employed and not acting as independent contractors, then they are paid the minimum wage for their state. (Although I will grant that this being a living wage is definitely arguable.)
Edit: Correction - although not California (my state), apparently some states do allow minimum wages in the $2-3 range if employees receive tips [1]. For the downvoters, I only count about 5 states that do this, however. The original statement does not accurately reflect the majority of the U.S.
illumin8|14 years ago
http://www.dol.gov/wb/faq26.htm
Question: Is it legal for waiters and waitresses to be paid below the minimum wage? Answer: According to the Fair Labor Standards Act, tipped employees are individuals engaged in occupations in which they customarily and regularly receive more than $30 a month in tips. The employer may consider tips as part of wages, but the employer must pay at least $2.13 an hour in direct wages. An employer may credit a portion of a tipped employee's tips against the federal minimum wage of $7.25 per hour effective July 24, 2009. An employer must pay at least $2.13 per hour. However, if an employee's tips combined with the employer's wage of $2.13 per hour do not equal the hourly minimum wage, the employer is required to make up the difference. The employer who elects to use the tip credit provision must inform the employee in advance and must be able to show that the employee receives at least the applicable minimum wage (see above) when direct wages and the tip credit allowance are combined. If an employee's tips combined with the employer's direct wages of at least $2.13 an hour do not equal the minimum hourly wage, the employer must make up the difference. Also, employees must retain all of their tips, except to the extent that they participate in a valid tip pooling or sharing arrangement.
sambe|14 years ago
Coming from a country with a culture of smaller tips and significantly less social pressure to give them, I usually say that I should not be forced to make up for the employer's false advertising when receiving only mediocre service. This now seems correct - not tipping wi make the employer pay the remainder, not force the waitstaff on to the streets. Right?
c0riander|14 years ago
More here: http://www.paywizard.org/main/Minimumwageandovertime/Minimum...
unknown|14 years ago
[deleted]
SkyFoxMedia|14 years ago
noodle|14 years ago
if an employee doesn't at least make minimum wage after tips are considered, an employer is required by law to compensate an employee up to the point where they do make minimum wage. in theory.
in practice, this doesn't always happen.
jeromec|14 years ago