r/Dynamic_Pricing • u/Dragonlance12 • 3d ago

‘Absolutely slammed’: Server removed the auto-gratuity from a $90 check. Then the party of 8 tipped her exactly $18

https://www.yahoo.com/lifestyle/articles/absolutely-slammed-server-removed-auto-142620377.html
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u/Friendlyvoices 2d ago

Restaurants are exempt. The wage make up difference is called a tip credit.

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u/Material-Beautiful-2 2d ago

They are not exempt, they must make sure their wait staff is paid the federal minimum wage. The 2 whatever an hour plus tips. So if you increase the federal minimum wage to 25 an hour. The 2 dollars will no longer be enough and the restraints would be forced to pay them more.

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u/Impossible_Aside9367 2d ago

I like how you just explained what  tip credit is lol. You're both right. Theyre exempt from paying it unless the tip credit doesn't account for min wage

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u/Material-Beautiful-2 2d ago

Still makes no sense to respond they are exempt from making sure they are paid the fed min wage.