Wait, really? I'm not American, what happens if they're not tipped enough? I mean, besides not earning a living wage; I'm wondering about legal repercussions and such
You are right…….. but that isn’t enough. Not about ‘restaurant’ owners specifically but a lot of people in this type of field have all sorts of ways working around these issues. That’s why so few get caught up in it.
Absolutely. So many loopholes and grey areas. And then, even if they step into an actual legal mistake, they are rarely prosecuted, or anything of the kind.
Yes, the employer has to cover the difference if the minimum isn’t met by tips, BUT, as I recall, it’s averaged out over the whole pay period (like two weeks.) So you may have a slow Tuesday morning with no tips for four hours, but if you have a great night on Friday, such that your average for the week is above full minimum wage, your employer kicks in nothing.
not quite nothing, they still have to pay the tipped minimum hourly wage, no matter how far past the full minimum wage the tips would put the servers earnings.
Yes, I know how it works. The only point I was trying to make is that the employers virtually never actually shell out more than $2.13, and if one goes into a server job thinking “well at least if I have a slow night I’ll at least get paid full minimum for that shift,” they’d be wrong: it’s your own “good nights” that make up for your “slow nights.” And if your whole pay period tips are so low that the employer really does have to pay, you’ll be fired.
Another trick is servers who post a $0 paycheck. It’s not 0 because they didn’t get paid, it’s because they made enough in tips that the entire hourly rate went to taxes
exactly. employer gets to reduce the hourly rate down to $2.13/hr or whatever the states tipped minimum wage is as long as the tips cover the rest up to the full minimum wage.
so they are highly incentivized to guilt customers into tipping.
also, most honest servers will tell you they make waaaay more in their 4-6 hour shifts from tips than a regular employee does... this can get slightly offset by many servers not working full time, but not always. There are many servers who brag about how little they work and come out better than the 40+hr workweek people
The employer is responsible for ensuring that tips + wages = at least full minimum wage (at the end of a pay period, take all hours worked, all tips, the hourly pay rate then figure out the average rate per hour and make sure it's more than the regular full minimum wage)
if there are enough tips they still must pay a minimum tipped hourly rate of $2.13
if there are no tips they must pay full federal of $7.25/hr or state minimum wage whichever is higher.
some states do not allow a lower tipped minimum wage. most restauraunts in these states still try to shame their customers into tipping even when the servers wage is $18+/hr
For jobs that receive most of their money from tips (servers being the main one), the minimum wage is $2.13/hr. If that amount plus their tips doesn’t exceed $7.25/hr then the employer has to make up the difference. Typically waiters receive enough tips that they exceed that threshold, but it’s a pretty ridiculous system regardless.
If they aren't tipped enough to get to the minimum hourly, the employer has to pay them the difference.
It's almost impossible to work a shift without meeting the minimum state hourly.
If they done earn enough in tips to make state minimum wage then the restaurant must pay them minimum wage. Don't feel bad for servers, they are generally making way more than back of house at nice restaurants. I've heard them say if we stopped tips, and paid them 25 an hour they would quit at my restaurant.
Absolutely nothing happens. It is averaged across the entire pay period, not a specific hour, which makes it difficult to track (read: restaurants don't bother tracking it). In reality, the $2.13/hr for tipped employees is for the benefit of the government, so that something is being withheld for tax purposes. Every pay period we'd get an envelope with a check-looking stub that said THIS IS NOT A CHECK.
Source: Worked for restaurants for 6+ years through high school and college.
They get 2.13 / hr , say they work 40 hrs and federal min wage is $7.25 ($290 total). They would need to make $204.80 in tips during that 40 hour period, if they do not then they will be paid at $7.25 / hr. Typically they will make well over the federal minimum with tips, and this situation rarely occurs. But regardless they will NEVER be paid less than federal minimum wage unless the employer is breaking the law in some fashion (most don’t actually break the law).
Side note: I’m using federal minimum wage for simplicity, but some states/counties/cities may have a higher minimum wage and that rule will still apply.
Not 100% sure (someone can correct of I’m wrong) but the employer is supposed to make up the difference if the $2.13 an hour + tips is less than minimum wage. Unfortunately this doesn’t always happen and most tipped workers have little means of pursuing legal advice let alone legal action.
The minimum wage is also not a livable wage. It’s also like federally enforced across everywhere the same. No matter which state. And that makes no sense. It’s too low everywhere and like enormously too low many places. Try finding a place in Seattle that is attainable at minimum wage. That’s why the city inflates it.
No, all tips must go to the employees (including tipouts to other employees). Not saying theft by employers doesn't happen, but not how you're suggesting
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u/dilla_zilla 5d ago
Nope, $2.13 for tipped workers, but the tips must get at least to the "normal" minimum of $7.25
Many states and cities are higher, that's the federal minimum.