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this post was submitted on 11 Jun 2024
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Federal minimum wage for tipped workers is $2 and some change.
Legally if they end up making below minimum wage ($7.25 federally I believe, some areas are higher) between tips and wages the employer needs to make up the difference. Obviously with some of it being cash it's difficult to track and prove, so realistically they won't make up the difference.
I'm not for tipping culture, but realistically they're usually doing better than people making minimum wage without tips. I knew someone working at a DQ about a decade ago making $5.25/hour without tips. Minimum wage was still $7.25 back then, but apparently family owned businesses have a minimum wage of $5.25. Not sure if that's true, but they were able to sell it to their employees.
Here in Canada they get minimum wage plus tips. So... yeah, wow.
I guess Americans are ok with subsidizing employee wages on behalf of companies.
I promise many of us are not.
We are not and we're powerless against the kleptocrat overlords. If there was another America out there it'd invade to protect our democracy but no ither countries have the guts.
State to State here, but generally they are not legally required to pay minimum wage. Honestly neither make much sense to me, but that's tipping culture for ya