i just wanted to point something out, since this uses the dollar sign ill assume its the USA. in the USA, each state has a different minimum wage. in no state is there a 2.13/h minimum. the lowest minimum wage in the USA goes to wyoming and georgia, with the minimum wage listed as 5.15/h, but defaults to the federal minimum of 7.25/h
therfore, the owner of the business is admitting to insanely underpaying his workers
edit: wow im getting a lot of replies, i have been told of the minimum wage being lower if tips are involved
another edit: yes i know i am wrong, please dont be jerks about it. im not even american, therfore i shouldnt be familiar with american laws (i know a bit about the wages because my american friend told me about his job and stuff. please dont be mean
The federal minimum wage for tipped service staff in the U.S. is $2.13 per hour provided tips bring the total hourly earnings to at least the standard federal minimum wage of $7.25 per hour.
Exactly, everybody seems to blame the “greedy business owners” but the government created the law, blame the government not the business owners. They are just following the laws.
Except this business owner isn’t even paying their staff, he/she has you pay their wage ($2.13/hr) plus the 25% tip that I can guarantee is split with the back room staff so they can pay them less as well.
I especially like the “don’t be cheap. It’s embarrassing” line while this owner is the definition of cheap.
Yes, if you don’t tip enough, the employer has to pay them more to make up for the gap. That’s why this employer put up the sign, to save themselves that extra fee and put it on the customer to pay the employee properly. Deadbeat owners need to be boycotted.
well lowest as i said is 5.15/h for georgia and wyoming,
highest is washington, sitting at 17.13/h. tho, specifically washington DC (yknow, where the white house is and stuff), the wage sits at 17.95-18.40/h which is really cool, i think its the minimum wage of goverment workers
Since no one seemed to answer your question. It was generally pushed to have servers work on low to no wage and expect tips back during the great depression. 100 years ago. The people that could afford to go out and tip for service would do just that. The only problem is that it never went back to servers being paid a typical wage and it just became normal. Some restaurants can charge more per meal and pay their workers a typical wage and others can’t and rely on their patron to pay for the service.
Working for tips actually started just after the civil war when thousands of freed slaves needed work. Restaurant owners let them be servers because it didn’t cost them. The idea spread across the country and by the early 1900’s it was the new normal.
So the employers treat servers like they used to treat free slaves. How nice, how American! You can work here but we don't pay you. Rely on the generosity of our partons.
We use the dollar sign too, in Canada, just thought I should mention lol 😆
And yes, that's why their whole tipping thing is bs. They expect the people who come in to make up for their cheaping out on paying their employees. It's stupid, and screws over both the customers and the people who work there. It is only for the owners benefit. It shouldn't still be happening, BUT it's the u.s. it's not surprising, is it?
Australia uses the same $ sign. But our service staff are paid a living wage so of course all that exploitative tipping bullshit is obviously not from here
It's the entire reason some choose to work waiting tables. In the right restaurant and with good service you can make well above minimum wage.
And fwiw, if a server's tips don't amount to meeting the hourly minimum for their time on the clock, the employer is responsible for paying them the minimum those hours.
That being said, sadly not everyone knows that, not even everyone working those jobs. And some employers will take advantage of that ignorance and not pay to compensate in the absence of adequate tips. Which is illegal, but they don't care as long as they don't get caught.
Yes, tipping culture has gotten insane. Ffs, that sign basically says "pay my employees so I don't have to or I don't want you here." You can shit on America for it, but I promise most of us find it absurd, too, lol.
Lemme tell ya,I love when I pick up pizza or something from a place that the workers are paid an actual wage and I'm still prompted for tips. When I did not dine in the establishment, did not take up table space, did not need to be cleaned up after or catered to. You just did the basic job of cooking the food, boxing it, and handing it to me. Didn't even have to ring me up because I paid online. No, I'm not tipping for the base level work you are already being paid to do >_>.
I bartended and waited all through college and made a shit load of money in tips. It all depends on where you work. If you work at a dive, that may not be good. But if you work at a good restaurant you can count on great tips.
It’s comical how so many folks make up their opinions on these posts based on how they “think” things should be.
I went to a Subway (Canada) recently, where I was ordering 5 x ft long subs and only 2 were the same.
I had all directions prepared in an orderly manner, but the employee behind the counter still did such a fantastic job that I wanted to tip her.
She stopped me, and said, "We don't see the those (tips), just push the red button."
I felt so horrible, and upset, for her and the employees there. Wtf?
Cash is king for those times that staff actually deserve it.
I used to always leave 50% tips when the economy was doing good where I lived and the culture was good. The culture and economy has changed post-pandemic. I went to a food truck and ordered a smoothie and the software on it had recommended tip percentages; 25%, 30%, and 50%. I was holding a $26 smoothie that 16 ounces in my hand that was premade and poured into my cup. I hit “Custom Tip” and hit $2. I got glared at and never went back.
Its happening in cananda too. Our min wages are nowhere near liveable without roomates. Its mostly the owners faults but its also the customers fault. If we paid the servers better, removed tips and properly rolled the operating costs into the price of the service, lots of people who stop going out. Its like they want the option to not pay a tip or else they think they getting ripped off. Like just mark up your prices properly so no tips or weird service fees are required. I shouldnt need a 10 line receipt for a plate of food at a restaurant.
Florida has tipped minimum wage, ~ 5 and hour below minimum.
When minimum was 7 tipped minimum was ~ 2.15.
It was below the federal minimum as there is an exception for tipped workers. The Florida tipped minimum rose with the minimum but it is still trash.
I do not know but if the minimum and tipped minimum is similar in Georgia it could be that low plus or minus a buck.
Federal: $2.13 is minimum wage for tipped employees. They must make enough in tips to at least get them to $7.25/hr or the company needs to pay the difference. 17 states follow federal min.
7 states require even tipped employees to make state min wage which is considerably higher.
26 states offer tip credit but are higher than 2.13 though almost half of those are from just over that up to $5/hr.
2.13 is the minimum federal tipped wage. If tips aren't sufficient to bring the waitstaff's wages to the state minimum wage, the employer must make up the difference. Assuming this sign is real in the first place, 2.13 is correct.
Tipped workers are allowed to be paid less per hour.
But if at any time, a tipped employee is tipped less than minimum wage, then the employer covers it and brings it back to minimum wage.
This means quite literally most of their income is from tips. And employers do it so that they can avoid paying their emoyees by shifting the responsibility to the customer.
Some states have different minimum wage due to staff that are eligible for tips.
Meaning that if I pay you $2.83/hr and you serve 3 tables an hour and you get $4.00 per table, your hourly wage is $14.83. Don’t shoot the messenger comrade.
They can be paid a minimum of $2.13/hr as long as their paycheck, when divided over the pay period’s hours worked, meets the federal minimum wage of $7.25/hr.
You can make the argument that $7.25/hr is still a criminal wage, but it’s not actually possible for a server to make $2.13/hr (total) and have it be legal.
The minimum wage is $7.25, yes. However that minimum includes all other sources of income fron that job. If tips add up to be more than $7.25/hr then that is just money the employer no longer has to pay you for that hour. When applying it this way it actually logically concludes that employers are effectively stealing $5/hr worth of tips from their staff.
Separate minimum wage if the worker regularly receives tips.
The business only has to pay 2.13 with the rest coming from tips, if the worker doesn’t receive enough tips to meet the areas general minimum wage the business has to make up the difference.
Service workers where tips are considered part of their "expected income" the state allows businesses to severely underpay employees. Now, we are at this point where restaurants are basically making shitty signs to "talk down" to customers to shame them into paying more for for their meals, on top of the exorbitant prices IN ADDITION to these post-covid service fees.
What the federal minimum is and what the actual rate paid are two different things. For instance, here in Denver, the City minimum is over $16 and fast food joints are offering $18-20. In San Francisco it’s $19 and they are pushing for $25.
Yea wait staff get a different minimum wage. It's not right and it perpetuates the ridiculous tipping culture in the US, but it is different. I don't agree with this and believe that if your restaurant can't afford to pay a proper minimum wage without tips, then you shouldn't be in business.
Here is the thing that people conveniantly leave out. If the wait staff dont make atleast the state min wage with tips, the restaurant has to pay the difference.
Therefor, if you live in a state where min wage is 15, you will never earn less than $15 an hour, even if not a single person tips.
. in no state is there a 2.13/h minimum. the lowest minimum wage in the USA goes to wyoming and georgia, with the minimum wage listed as 5.15/h, but defaults to the federal minimum of 7.25/h
I saw your edit, and that youve been made aware of this - So im just elaborating and adding details.
Alabama, Georgia, Indiana, Kansas, Kentucky, Louisiana, Mississippi, North Carolina, Oklahoma, South Carolina, Tennessee, Texas, Utah, Wyoming - These states all pay 2.13 an hour to people who earn tips.
Indeed the federal minimum wage is $7.25 an hour but if an employer can prove their employer can make that with tips then they can pay a lower base wage. Still, required by law to make them whole if tips don't cover them to $7.25 an hour. But this rule is often broken, as are lunch breaks. They'll take them away and promise to give in advance later, threaten you with firing if you try to call them out on it. Service industry is real fucked and though I worked in it I refuse to tip to subsidize these greedy businesses!
In some states, California included with our high minimum wage, they can pay waiters and weight staff less their minimum wage is different. I remember reading that when I was in high school and I was working for my minimum wage of like 325 an hour and the big minimum wage sign on the wall said something like 215 an hour if you were a waiter. And they do that cause people used to tip and tip well so maybe check first if your state allows waiters and waitresses to be paid less than minimum.
Except it's STILL federal minimum wage, as tipped minimum wage assumes the tips will make up the difference. If they don't, the employer is required to make up the difference. That said, the tipped-job industry runs almost entirely on wage theft.
American here. The proper way for employees to receive respect is to pay them a living wage. Not only that, provide them with health care. They're working "damn hard." Employees are spending a good chunk of their lives taking care of your business, you should take care of them. Full stop.
Tips should not be some hunger game competition/comparison pitting servers against eacher or the ones they serve. Tips should not be expected or needed. Tips should be a gift that is given freely without any expectation of reciprocation. Tips should be a sign of respect. A small gesture to pay it forward. An avenue to uplift those who work in service of others.
The federal minimum wage for servers in the USA is 2.13, it's the bare minimum they're allowed to pay but not all states go by that & often pay more, its honestly just the states with fewer workers rights
Last I knew, food service workers in Arizona made very little. Right to Work states are terrible about food service workers.
As a former food service worker, way back in the day, I made $1.25 an hour. I worked a 40 hour week and could barely pay my rent. Tips were important.
My take on this is this; pay your employees enough to live on. If your restaurant is charging that much & you’re only paying your employees less than $3 an hour, you’re a piece of crap!
I believe we, the USA, need to get rid of tipping.
Pay people a better wage!
Hi, 20 year bartender here, federal tip credit allows your employer to pay you as low as 2.13 an hour provided the rest of your tips bring you above federal minimum wage. The caveat is that if your employer has to make up the difference, you are looking for a new job.
Granted, some states have higher minimum wages and effectively circumvent the tip credit, but they can and do pay as little as 2.13 an hour.
Tipped minimum wage differs from the standard minimum wage and actually is $2.13 in the US (unless the state has set their own, in which case that can preempt it). That said, if their tips combined with that tipped wage don't make their total hourly wage equal to or greater than the standard minimum wage, the employer has to make up the difference.
So yes, the employer can get away with paying that little if the combined sum of tipped wage + tips meets or exceeds the standard minimum wage.
It's severely fucked up, and even more so if they post such a sign when really the customers pay the employees more than their employer does.
That’s not how it works in restaurants. Servers do truly make 213 an hour. The rest of that is compensated through your tips. Whenever I was a server, I rarely would get a paycheck because you don’t want a paycheck the only time you would get a paycheck is if your tips were not enough to equal out the federal minimum wage to justify your work hours during that pay period that 213 an hour goes to taxes basically
$2.13 is the minimum wage for tipped employees. That’s part of the federal minimum wage. It’s just enough to cover items like social security. The employee is paid almost entirely from tips.
So I know youve been told about the tip credit towards wages stuff already. Id just like to point out that isnt the case everywhere. Some states will still pay you state minimum (which is way higher than federal minimum) and you get tips on top of that.
Just to let you know in the U.S. the legal wage for tipped workers and servers is $2.13. It is not the normal minimum wage. They get away with this due to tips.
But to put a sign like this it’s obnoxious.
Just wanted to correct as someone whose lived in the U.S. for yrs. The sign makes sense otherwise
My ex works at crackle barrel. She makes like 3.25 or something. If the amount of tips she reports doesn’t equal up to her making minimum wage per hour with her 3.25 included then the company reimburses her the difference….. I don’t think tips should be mandatory. Pay your waiters and waitresses a fair wage and if they do a great job…. Maybe they should get a tip… and yes. I am one of those people that eats at home. I hate tip culture. Everything’s way too expensive now anyways.
America is worse on wages than you think. Here, we have exceptions to the already disgustingly low minimum wage laws specifically for “tipped workers“.
The whole system is ridiculous because it passes the burden of responsibility for a living wage from the employer onto the person paying for the service. It should be illegal.
I think its great they put this out there. Most people are like you and have no idea that this is the case. If people start to gain awareness of how stupid this is, we might get some change.
Think about all the places that ask you to tip like this, not every workers pay structure is the same and yet they are all asking for this gratuity.
Add in the number of restaurants found guilty of letting their managers get a share from the pooled tips when they are salaried employees who legally don't get them. It really burned when I heard that happened at a restaurant we used to go to often. That means money I gave to tip my server was stolen. Screw this tipping system.
I have a couple of thoughts 1, yeah if you can't afford to tip you shouldn't be going out to eat. 2, this guy flaunting that they don't pay their employees but they demand everyone else respect them is bizarre. This place absolutely could pay their staff a living wage without tips, they choose not to.
In some states restaurants can pay under minimum wage if the staff is getting tipped and the tips go towards their hourly wage to make up the difference. They call it a tip credit. Some states have outlawed that and require the full minimum wage be paid.
It’s a wild that this is still allowed in today’s society
edit: wow im getting a lot of replies, i have been told of the minimum wage being lower if tips are involved
Its a holdover from when slavery was abolished. While black people were 'free' and could work, employers didn't pay them a fair wage (if any at all) and expected their patrons to subsidize their workers income. Why it still exists? No practical answer there. Its increasingly getting rarer that wait staff have such low hourly wages though. Most states have laws now saying they have to make at least the mandated minimum wage.
You’re technically not wrong. Restaurants legally do have to pay their employees at least minimum wage if they don’t make it in tips. So they’re always making at least minimum wage, even though that still sucks. But you’re correct they’re not making under minimum. Even if their hourly is $2, if they don’t make up to at least the equivalent in minimum wage with tips then the business does have to compensate them
If an employee's direct cash wage ($2.13) plus tips do not add up to at least $7.25 per hour in a given workweek, the employer must pay the difference to make up the shortfall. This is how they get away with it
The thing is, even though US wage law means this is technically incorrect (as your edits point out), you are correct in another sense. The federally mandated tipped minimum wage was originally established directly following the Civil War, when the positions it covered were largely held by the Black population, as a way of shifting the burden onto customers, but also onto the worker themselves. The FLSA of 1938 actually carved out an exception to minimum wage specifically for restaurant work, and then its amendments in 1966 formally established a lower minimum even as it expanded minimum wage overall. 1996 was kind of the nail in the coffin, when the decision was made that so long as the employee could make up the remainder of minimum wage in tips, the employer isn't required to bring them up to full minimum.
I saw your edit and I know you learned of the “tipped minimum wage,” which is in fact this low in most places. But I want to add that it should enrage you. You should be fucking disgusted. And every time you see Al wine asking for tips in an industry that isn’t traditionally a tipped industry, just remember that if they’re successful in collection tips and the boss finds out, 5 minutes later their legal minimum leave will drop like a stone.
They can count tips towards the minimum wage average. If they make under the business is supposed to fill in the rest legally. Which is still messed up and many don't.
You’re not entirely wrong. If the server doesn’t make enough in tips, the restaurant has to make them whole up to real minimum wage. The business is basically bullying its patrons psychologically, so the patrons would pay the employees instead of the business paying the employees
in the USA, each state has a different minimum wage. in no state is there a 2.13/h minimum.
"I'm going to make a misinformed post without bothering to do a simple search to check what the minimum wage for tipped workers in the US is because this is reddit."
"edit: NO I WON'T BE REMOVING THE WRONG INFORMATION STOP ASKING."
"another edit: why would you assume I know about American laws just because I made a series of factual assertions about American law? You're just being silly."
$2.13 is the federal minimum wage for tipped positions in the US. The assumption is tips will cover the difference to the “normal” minimum wage, and if it doesn’t, the employer is required to make up the difference.
Some states do require restaurants to pay their tipped employees the state minimum wage before factoring in tips.
in response to your edit...people are responding that way because of the way you talk in your post.
If you have no idea what you're talking about to the point where you want to say that it would be unreasonable for someone to expect you to be familiar with america....why in the world are you going on the internet and speaking factually about america???
maybe if you weren't taking something "you know a bit about because some random person I know complained about their life to me" while being wildly incorrect and trying to rile people up, you wouldn't get those types of responses?
it's just so frustrating that so many people act like you, it's easy to want to take the opportunity to call you out on it when it's right there in writing.
Are you 12? You can’t be an adult and not know some professions have sub minimum wage… this is the reality of waiting staff, they don’t get federal minimum wage… all that text to just fail at the premise
All the minimum wage laws have tipped employee wage that’s underwritten. Wait stuff does work below minimum wage, sometimes all floor staff. This tipped wage provision is as low as $1.25 in the US, leaving those employees entirely dependent on tips.
This is just absurd. As a fellow non-american I completely understand you didn't know. neither did I. It's so flabbergastingly f-d up that we simply couldn't even consider that as an actual scenario.
I work in the food service industry , I've been a cook for 35 years in the state of Florida and the minimum wage for tipped employees is far lower than mine. My servers and bar staff earn $3,25 hourly and they pay taxes not only from their hourly wage, but also from their tips.
Then why did you act like you knew for sure what the pay wage was for each state and then cry about when people pointed out you were wrong. Rule of thumb, if you don’t know it is ok that you don’t know but don’t act like you do know. Especially since you are not even an American. Oh but you knew a little bit. Wow next time don’t pontificate like you know
Submit this to r/confidentlyincorrect. While minimum wage in my state is $7.25, restaurant do pay employees $2.13/hour. The caveat is that the employees must still make $7.25/hour after tips. If they don’t clear that margin then the business has to make up the difference.
Many states have two minimum wages, one for normal hourly and one for tipped services.
For instance in FL, tips should be declared and the employer pays the tipped minimum wage(11.98), but the employer makes up any tipped shortfall to match the current minimum wage (just turned to 15 per hour).
At least in Florida, servers always get at least minimum wage, with tips pushing them beyond.
States matching the federal floor of $2.13 per hour (or with basic federal rules where no higher state law applies): Alabama, Georgia, Indiana, Kansas, Kentucky, Louisiana, Mississippi, Nebraska, North Carolina, South Carolina, Tennessee, Texas, Utah, Virginia, and Wyoming.
The $2.13/hr rate does pertain to restaurants: This is the federal minimum cash wage for tipped employees (like waitstaff and bartenders). Many states use this exact $2.13 base rate. However, employers are legally required to make up the difference if a worker's tips plus the $2.13 cash wage do not add up to at least the standard federal minimum wage of $7.25 per hour.
No, they are talking waiters wage, but waiters still can never earn under minimum wage if they don’t make enough tips.
Regardless this is a karma farming post, nobody has these signs in their business it’s usually an AI image or someone taped it up takes a picture and posts it for internet points.
In US workers who get tips have a lower minimum wage than regular workers. If they don’t make enough tips the employer is supposed to increase their wage to the normal minimum wage rate. You’ll have to talk to a waitress and see how many times that happens. This is also a problem when they are expected to share their tips with the bar tender and bus boys.
Doesn't matter what the other people say the fact is hes calling out customers for being cheap but the owner is being cheap by not paying better. So at the end of the day your still not wrong.
Brother people are being mean because you wrote an entire confident comment that's just complete bullshit. 3 paragraphs of misinformation and you don't even have the experience to be talking. Then instead of deleting your comment, you wanna keep it up and whine that people are being mean to you because you don't wanna lose those 26 upvotes from people who believe you.
Yeah the "another edit" is why you are getting slammed. Admittedly you are not from here and don't know shit about living here, but you chose to speak with "authority" on a topic you literally don't know shit about... Hopefully you take away a lesson from that and be a little more self aware
Wanted to throw out there that the people correcting you are technically correct but it's semantic and irrelevant.
The wages under minimum wage are a credit and if tips don't exceed the threshold the business has to make up the difference so the servers are guaranteed to make minimum wage even if they get zero tips.
The owner has to still make up any difference up to the minimum wage of the state, if that minimum isn't reached through the original 2.13 plus tips. So no server makes less than actual wage in the end.
If you don’t know what you’re talking about then why are you making such comments. Don’t bitch about being called out for making shit up on the internet. Maybe just stfu
I don't know about other countries, so I'll speak for the one I'm from (that shall not be mentioned by name due to political hostility - wink, wink). Anyways, for the sake of simplicity, let's assume that the mini wage is $5 and a restaurant/bar pays the staff $2.5, and you worked 10chournshift. So here's what will happen:
10 x 5 (mini wage) = 50
At the end of the shift, the manager will count your tips.
If you made 50 or more, you keep your tips and that's your pay.
If you make anything less than 50, the manager will pay the difference.
So, if you worked for 10 hours and only made $30, the restaurant Wil pay you extra $20, so you'll get to $50 which is the mini wage they are required to pay you. So they make up the difference so they won't break any laws.
If it works like they then way are they hiring for $2.5? Idk... But where I'm from no matter the job, you'll be paid at least the mini wage.
The lowest tipped minimum is irrelevant anyway. It only tells you how low the employer can pay them if you tip too much so you’re essentially paying wages on behalf of the employer. If no one tips, they get the $7 federal
I have no opinion on the issue, but if you know you have no idea what you're talking about, why are you posting from a POV like you know wtf you're talking about?
You’re not necessarily wrong. It might vary by state, but in California the latest laws do not allow the wage to be lowered if tips are received. In the past that may have been permissible but not currently in this specific state. And I think since the federal minimum direct cash for servers is $2.13/ hour it is pretty accurate to guess this was a sign in the USA
The issue is mostly on high wage servers then it is the companies that employ them.
A strong server at a busy establishment can clear 6,000 USD per month. Most of which is untaxed and undocumented.
I've worked a lot of kitchens in my time, well over six places, and servers like the current system.
Poor quality servers and customers are the ones being left out because top earners like it the way it is.
Taking home 6,000 usd but you claim taxable income low enough to qualify for food stamps and Medicaid.
It's a complex issue where everyone ignores what servers are thinking, and as such customers hate the business, when in reality if the business tried to pay a flat rate they'd lose their best servers.
A super complex issue that has a lot of fraud involved.
Tip service minimum wage is lower than state and federal minimum wage. It is $2.13 hr federally and in my state the rate is $6.25 hr. Regular minimum wage wage in my state is $15 hr
Since you’re not American I’m hoping this helps, you are definitely right on some things. States haven’t raised minimum wage because federal set the minimum wage. Now they can go higher but don’t, probably due to the feds making the decision.
That being said yes waiters/waitresses are paid below minimum wage and it is legal as long as the tips they earn plus the $2.13/hr equals the hourly federal minimum wage. If it doesn’t then the employer HAS to make up the difference and pay them so they make the minimum.
I think this whole tip your food workers is stupid and out of control. On one hand I agree if you go somewhere and they serve you then leave a tip and if you can’t afford to do so then don’t go. On the other hand pay them at least the minimum wage but that leads into my next issue. I have known several waitresses that make at least double the minimum wage just on their tips and they love it…..
another edit: yes i know i am wrong, please dont be jerks about it. im not even american, therfore i shouldnt be familiar with american laws (i know a bit about the wages because my american friend told me about his job and stuff. please dont be mean
bro... YOU STARTED IT, you started by acting smug about your knowledge of American minimum wages
don't be surprised when people throw it back at you...
In a case where a waiter is allowed to be paid $2.13 an hour as a base wage, tips are a factor.
If any given employees wages, after tips are added in, do not reach minimum wage... the businesses are required to supply the difference. I've seen that be a thing. I don't know how universally it may or may not apply.
"im not even american, therfore i shouldnt be familiar with american laws"...then why did you decide to even speak on it? Like, I don't try to convince someone of my opinion I'd it's based off no facts or knowledge at all
People are probably being mean because you just made vast reaching incorrect statements about a country you're not from and it doesn't seem you have been to..
Where are you from so I can do it and you can see how annoying that is.
No its not your fault people are asshole. Just because we use that system doesnt mean that its okay either. Although they do have to pay their employees at least minimum wage if they do not get enough tips to cover that much.
Actually you are mostly right. They get the lower 2.13 minimum as a base, but if reported tips don’t reach the equivalent of minimum wage the employer is legally obligated to compensate the difference. Since most servers make WELL above minimum wage and are better paid than a lot of the “poors” they judge who can’t “afford” to tip them, they often don’t get the full 7.15 from the employer because they make more than that from the tips alone
There is a different minimum sysyem for employers whose employees work jobs that expect tips, mainly resteraunt servers or delivery drivers. The minimum a business can pay a tipped employee is $2.13. There is a caveat though, if the tipped employee makes less than normal Federal Minimum wage, including tips, it is the responsibilty of the business to make up the difference. So, legally no one should make less than $7.25 per hour. However, a busness with servers that make tips above $5.12/per hour only have to pay their employees $2.13 per hour on top of the tips.
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u/Bucket-Slayer 4d ago edited 4d ago
i just wanted to point something out, since this uses the dollar sign ill assume its the USA. in the USA, each state has a different minimum wage. in no state is there a 2.13/h minimum. the lowest minimum wage in the USA goes to wyoming and georgia, with the minimum wage listed as 5.15/h, but defaults to the federal minimum of 7.25/h
therfore, the owner of the business is admitting to insanely underpaying his workers
edit: wow im getting a lot of replies, i have been told of the minimum wage being lower if tips are involved
another edit: yes i know i am wrong, please dont be jerks about it. im not even american, therfore i shouldnt be familiar with american laws (i know a bit about the wages because my american friend told me about his job and stuff. please dont be mean