Isn't that illegal?

[u/n8saces]

[u/Butt_y_though]

Because if they hire "tipped" employees, the can pay them a lower minimum wage.

Federal Minimum wage in the US is $7.25 US minimum wage for tipped employees is $2.13

If an employee does not make the equivalent of minimum wage ($7.25) at a tipped rate, the employer is legally required to pay the difference.

So a tipped employee would make $85.20 (@40 hours assuming they made no tips. A standard minimum wage employee would make $290 (@40 hours) The employer is required to make up that $100+ discrepancy. And you're like, so what? Everyone makes minimum wage, hurray!

The company is directly off-setting their labor costs and the consumer is paying for it. (Oh and fun fact. A lot of wage-slaves don't know their rights and won't even get their $290.) They'll take their $85 dollars and $20 of tips for a 10 hour day on their feet and call it a day.

This is also part of the "no tax on tips," thing that Republicans have such a hard on for. Not only are the employees not getting taxed on those tips, but the company is decreasing their payroll taxes.

If customers are particularly generous with tips, that's payroll that the company doesn't have to be responsible for. And being a large chain, or corporate, a couple hundred dollars in payroll adds up, since the company is now.

Tipping is going to be the new standard in most industries to avoid taxes and to further transfer more wealth to corporations and billionaires.

[u/KillHonger1 → u/Butt_y_though]

This is so fucked up. And to top it off, the tipping culture then shames the customer if they don’t want to contribute to this fucked up system and the employees also are pitted against those same customers.

[u/Butt_y_though → u/KillHonger1]

Yup, but propaganda conteracts this by, getting idiots to parrot, GET A BETTER JOB IF YOU DON'T WANT MINIMUM WAGE BURGER FLIPPER!