you are viewing a single comment's thread
view the rest of the comments
[–] 12 points 3 years ago (4 children)

Wait so they get paid less than the minimum wage? What’s the point of minimum wage if they have to make up for it with tips?

  • source
  • parent
  • hideshow 8 child comments
  • [–] 1 point 3 years ago (2 children)

    There's technically two different rates employers are federally required to pay. First there's the standard $7.25/h. The second is for workers that receive cash tips. Employers are allowed to pay said workers as little as $2.13/h so long as their tips and their regular wages work out to $7.25h. If the employee's gross pay works out to less than $7.25/h, then the employer is obligated to make up the difference. The idea, I presume, is to allow some wiggle room to "encourage a more competitive market for smaller businesses," while still ensuring workers make at least the minimum.

  • source
  • parent
  • hideshow 4 child comments
  • [–] 5 points 3 years ago (1 child)

    If the employee’s gross pay works out to less than $7.25/h, then the employer is obligated to make up the difference.

    I imagine the result it that any employee demanding the employer to fill the gap is fired because obviously they provide bad service, otherwise they'd get more tips. Right?

  • source
  • parent
  • hideshow 2 child comments